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Microsoft Financial Data - FY12 Q2
This file contains downloadable content that corresponds to Microsoft's Investor Relations portal at http://www.microsoft.com/investor. Click a link below to navigate to that section of the workbook. Each sheet contains a link back to this main page.
Current Financial Statements Trended Historical Financial Statements
Income Statement Income Statement
Balance Sheet Financial Operating Segment History
Cash Flow Unearned Revenue
Segment Revenue & Operating Income Yearly Income Statements

Income Statement

MICROSOFT CORPORATION Back to Main
INCOME STATEMENTS
(In millions, except per share amounts)
Three Months Ended December 31, Six Months Ended December 31,
2011 2010 2011 2010
Revenue $ 20,885 $ 19,953 $ 38,257 $ 36,148
Operating expenses:
Cost of revenue 5,638 4,833 9,415 7,972
Research and development 2,371 2,185 4,700 4,381
Sales and marketing 3,762 3,825 6,662 6,631
General and administrative 1,120 945 2,283 1,883
Total operating expenses 12,891 11,788 23,060 20,867
Operating income 7,994 8,165 15,197 15,281
Other income 245 332 348 446
Income before income taxes 8,239 8,497 15,545 15,727
Provision for income taxes 1,615 1,863 3,183 3,683
Net income $ 6,624 $ 6,634 $ 12,362 $ 12,044
Earnings per share:
Basic $ 0.79 $ 0.78 $ 1.47 $ 1.41
Diluted $ 0.78 $ 0.77 $ 1.46 $ 1.39
Weighted average shares outstanding:
Basic 8,402 8,497 8,397 8,555
Diluted 8,465 8,570 8,489 8,646
Cash dividends declared per common share $ 0.20 $ 0.16 $ 0.40 $ 0.32

Balance Sheet

MICROSOFT CORPORATION Back to Main
BALANCE SHEETS
(In millions)
December 31, 2011 June 30, 2011(1)
Assets
Current assets:
Cash and cash equivalents $ 10,610 $ 9,610
Short-term investments (including securities loaned of $831 and $1,181) 41,126 43,162
Total cash, cash equivalents, and short-term investments 51,736 52,772
Accounts receivable, net of allowance for doubtful accounts of $321 and $333 13,643 14,987
Inventories 1,351 1,372
Deferred income taxes 2,169 2,467
Other 3,614 3,320
Total current assets 72,513 74,918
Property and equipment, net of accumulated depreciation of $10,546 and $9,829 8,010 8,162
Equity and other investments 7,550 10,865
Goodwill 19,670 12,581
Intangible assets, net 2,581 744
Other long-term assets 1,919 1,434
Total assets $ 112,243 $ 108,704
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,884 $ 4,197
Accrued compensation 2,677 3,575
Income taxes 921 580
Short-term unearned revenue 13,985 15,722
Securities lending payable 849 1,208
Other 3,057 3,492
Total current liabilities 25,373 28,774
Long-term debt 11,932 11,921
Long-term unearned revenue 1,349 1,398
Deferred income taxes 1,082 1,456
Other long-term liabilities 8,386 8,072
Total liabilities 48,122 51,621
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 8,382 and 8,376 63,902 63,415
Retained earnings (deficit), including accumulated other comprehensive income of $826 and $1,863 219 (6,332)
Total stockholders' equity 64,121 57,083
Total liabilities and stockholders' equity $ 112,243 $ 108,704
(1) Derived from audited financial statements.

Cash Flow

MICROSOFT CORPORATION Back to Main
CASH FLOW STATEMENTS
(In millions)
Three Months Ended December 31, Six Months Ended December 31,
2011 2010 2011 2010
Operations
Net income $ 6,624 $ 6,634 $ 12,362 $ 12,044
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other 678 663 1,404 1,357
Stock-based compensation expense 575 553 1,133 1,081
Net recognized gains on investments and derivatives (112) (226) (142) (255)
Excess tax benefits from stock-based compensation (4) (4) (74) (9)
Deferred income taxes 14 (117) 416 (265)
Deferral of unearned revenue 7,544 6,834 13,683 12,715
Recognition of unearned revenue (8,057) (7,301) (15,710) (14,163)
Changes in operating assets and liabilities:
Accounts receivable (3,652) (3,270) 1,081 404
Inventories 891 380 (29) (88)
Other current assets 605 (77) 865 131
Other long-term assets 30 118 (45) 180
Accounts payable 176 216 (266) (184)
Other current liabilities 394 (500) (599) (1,411)
Other long-term liabilities 156 283 276 843
Net cash from operations 5,862 4,186 14,355 12,380
Financing
Short-term debt repayments, maturities of 90 days or less, net 0 (1,000) 0 (186)
Proceeds from issuance of debt, maturities longer than 90 days 0 0 0 4,721
Repayments of debt, maturities longer than 90 days 0 0 0 (814)
Common stock issued 208 660 544 837
Common stock repurchased (1,042) (5,052) (2,976) (9,451)
Common stock cash dividends paid (1,683) (1,363) (3,024) (2,481)
Excess tax benefits from stock-based compensation 4 4 74 9
Other 0 0 0 (25)
Net cash used in financing (2,513) (6,751) (5,382) (7,390)
Investing
Additions to property and equipment (498) (491) (934) (1,055)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets (8,627) (69) (9,502) (69)
Purchases of investments (10,047) (5,896) (21,346) (13,313)
Maturities of investments 6,061 1,836 8,886 2,706
Sales of investments 7,835 2,603 15,371 4,030
Securities lending payable (292) 447 (358) 1,174
Net cash used in investing (5,568) (1,570) (7,883) (6,527)
Effect of exchange rates on cash and cash equivalents (52) (3) (90) 55
Net change in cash and cash equivalents (2,271) (4,138) 1,000 (1,482)
Cash and cash equivalents, beginning of period 12,881 8,161 9,610 5,505
Cash and cash equivalents, end of period $ 10,610 $ 4,023 $ 10,610 $ 4,023

Segment Revenue & OI

MICROSOFT CORPORATION Back to Main
SEGMENT REVENUE AND OPERATING INCOME (LOSS)
(In millions)
Three Months Ended December 31, Six Months Ended December 31,
2011 2010 2011 2010
Revenue
Windows & Windows Live Division $ 4,736 $ 5,056 $ 9,604 $ 9,843
Server and Tools 4,772 4,288 9,022 8,149
Online Services Division 784 713 1,425 1,260
Microsoft Business Division 6,279 6,110 11,886 11,312
Entertainment and Devices Division 4,237 3,698 6,198 5,493
Unallocated and other 77 88 122 91
Consolidated $ 20,885 $ 19,953 $ 38,257 $ 36,148
Operating income (loss)
Windows & Windows Live Division $ 2,850 $ 3,214 $ 6,101 $ 6,502
Server and Tools 1,996 1,711 3,593 3,248
Online Services Division (458) (559) (971) (1,132)
Microsoft Business Division 4,152 4,087 7,839 7,570
Entertainment and Devices Division 528 666 877 1,050
Corporate-level activity (1,074) (954) (2,242) (1,957)
Consolidated $ 7,994 $ 8,165 $ 15,197 $ 15,281

Historical Income Statement

Microsoft Corporation Back to Main
Quarterly Income Statements
(In millions, except earnings per share)
Q1-921 Q2-921 Q3-921 Q4-921 Q1-931 Q2-931 Q3-931 Q4-931 Q1-941 Q2-941 Q3-941 Q4-941 Q1-951 Q2-951 Q3-951 Q4-951 Q1-961 Q2-961 Q3-961 Q4-961 Q1-971 Q2-971 Q3-971 Q4-971 Q1-981 Q2-981 Q3-981 Q4-981 Q1-991 Q2-991 Q3-991 Q4-991 Q1-001 Q2-001 Q3-001 Q4-001 Q1-011 Q2-011 Q3-011 Q4-011 Q1-023 Q2-023 Q3-023 Q4-023 Q1-033 Q2-033 Q3-033 Q4-033 Q1-043 Q2-043 Q3-043 Q4-043 Q1-053 Q2-053 Q3-053 Q4-053 Q1-063 Q2-063 Q3-063 Q4-063 Q1-072 Q2-072 Q3-072 Q4-072 Q1-082 Q2-082 Q3-082 Q4-082 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12
Revenue $ 584 $ 686 $ 686 $ 821 $ 824 $ 945 $ 969 $ 1,048 $ 996 $ 1,146 $ 1,261 $ 1,311 $ 1,270 $ 1,516 $ 1,627 $ 1,662 $ 2,085 $ 2,287 $ 2,311 $ 2,367 $ 2,405 $ 2,808 $ 3,365 $ 3,358 $ 3,334 $ 3,792 $ 3,984 $ 4,152 $ 4,193 $ 5,195 $ 4,595 $ 5,764 $ 5,384 $ 6,112 $ 5,656 $ 5,804 $ 5,766 $ 6,550 $ 6,403 $ 6,577 $ 6,126 $ 7,741 $ 7,245 $ 7,253 $ 7,746 $ 8,541 $ 7,835 $ 8,065 $ 8,215 $ 10,153 $ 9,175 $ 9,292 $ 9,189 $ 10,818 $ 9,620 $ 10,161 $ 9,741 $ 11,837 $ 10,900 $ 11,804 $ 10,811 $ 12,542 $ 14,398 $ 13,371 $ 13,762 $ 16,367 $ 14,454 $ 15,837 $ 15,061 $ 16,629 $ 13,648 $ 13,099 $ 12,920 $ 19,022 $ 14,503 $ 16,039 $ 16,195 $ 19,953 $ 16,428 $ 17,367 $ 17,372 $ 20,885
Operating expenses:
Cost of revenue 126 139 139 177 168 191 202 224 228 260 284 305 284 331 355 376 522 566 541 516 482 558 583 547 534 613 640 673 649 788 708 669 712 756 752 782 825 864 899 867 978 1,691 1,567 1,463 1,344 2,137 1,274 1,304 1,480 2,344 1,411 1,481 1,405 1,875 1,363 1,388 1,253 2,239 2,028 2,130 1,696 3,620 2,140 3,237 2,675 3,543 2,514 2,866 2,848 3,907 2,814 2,586 2,842 3,628 2,755 3,170 3,139 4,833 3,897 3,708 3,777 5,638
Research and development 4 74 86 90 102 105 111 116 138 134 150 156 170 178 199 219 264 278 305 337 406 417 449 474 523 899 648 611 739 651 715 664 940 813 898 974 1,087 956 990 1,069 1,364 1,398 1,595 1,474 1,832 1,707 1,515 1,692 1,681 1,611 2,971 1,538 1,659 1,530 1,421 1,482 1,664 1,515 1,591 1,617 1,861 1,786 1,637 1,750 1,948 1,837 1,885 2,035 2,407 2,283 2,290 2,212 2,225 2,065 2,079 2,220 2,350 2,196 2,185 2,269 2,393 2,329 2,371
Sales and marketing 160 193 184 221 237 288 283 278 256 279 300 300 320 404 436 404 514 554 572 545 518 639 639 615 692 764 731 700 685 798 842 913 922 1,013 1,010 1,181 1,038 1,290 1,198 1,359 1,457 1,676 1,449 1,670 1,415 2,159 1,700 2,288 1,505 2,467 1,928 2,409 1,664 2,122 2,070 2,707 1,945 2,689 2,362 2,822 2,234 3,038 2,914 3,355 2,683 3,420 3,274 3,883 3,044 3,662 2,981 3,192 2,790 3,619 3,203 3,602 2,806 3,825 3,393 3,916 2,900 3,762
General and administrative 5 21 22 22 25 25 29 30 35 35 42 41 48 51 62 68 86 63 76 87 90 86 81 101 94 95 106 104 128 101 154 152 308 148 514 185 203 170 212 239 236 286 885 343 329 252 497 425 1,252 471 896 3,020 610 1,096 651 1,376 1,413 982 661 1,005 1,110 664 814 983 868 718 1,066 2,341 1,002 887 831 1,203 1,109 741 1,183 1,152 987 938 945 1,160 1,179 1,163 1,120
Other expenses (income) 3 2 3 3 1 (2) 2 6 4 2 4 6 2 5 5 4 4 (23) (4) 42 49 46 84 80 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total operating expenses 384 442 438 528 536 617 633 681 657 733 785 829 835 1,001 1,083 1,134 1,381 1,478 1,533 1,599 1,552 1,773 1,881 1,859 2,220 2,131 2,086 2,240 2,086 2,455 2,366 2,830 2,595 3,181 2,921 3,253 2,989 3,356 3,405 3,826 4,119 5,847 4,833 5,294 4,718 6,308 5,091 6,525 5,067 8,678 7,897 6,159 5,695 6,069 6,291 7,172 5,695 7,180 7,012 7,923 6,380 9,109 7,787 9,408 7,913 9,914 10,164 10,158 9,062 10,690 9,210 9,112 8,438 10,509 9,330 10,109 9,079 11,788 10,719 11,196 10,169 12,891
Operating income 200 244 248 293 288 328 336 367 339 413 476 482 435 515 544 528 704 809 778 768 853 1,035 1,484 1,499 1,114 1,661 1,898 1,912 2,107 2,740 2,229 2,934 2,789 2,931 2,735 2,551 2,777 3,194 2,998 2,751 2,007 1,894 2,412 1,959 3,028 2,233 2,744 1,540 3,148 1,475 1,278 3,133 3,494 4,749 3,329 2,989 4,046 4,657 3,888 3,881 4,431 3,433 6,611 3,963 5,849 6,453 4,290 5,679 5,999 5,939 4,438 3,987 4,482 8,513 5,173 5,930 7,116 8,165 5,709 6,171 7,203 7,994
Other income (expense) 12 14 14 16 19 19 21 23 23 25 26 28 36 42 48 65 66 76 86 92 92 105 119 127 88 109 159 176 396 311 720 454 531 760 878 1,100 1,075 723 660 (2,653) (1,010) 516 728 (631) 19 363 453 674 753 837 1,001 571 279 420 496 872 506 480 427 377 610 372 360 321 367 367 520 289 (8) (301) (388) 155 283 370 168 94 114 332 316 148 103 245
Noncontinuing items 0 0 0 0 0 0 0 0 0 0 (120) 30 0 0 0 (46) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Income before income taxes 212 258 262 309 307 347 357 390 362 438 382 540 471 557 592 547 770 885 864 860 945 1,140 1,603 1,626 1,202 1,770 2,057 2,088 2,503 3,051 2,949 3,388 3,320 3,691 3,613 3,651 3,852 3,917 3,658 98 997 2,410 3,140 1,328 3,047 2,596 3,197 2,214 3,901 2,312 2,279 3,704 3,773 5,169 3,825 3,861 4,552 5,137 4,315 4,258 5,041 3,805 6,971 4,284 6,216 6,820 4,810 5,968 5,991 5,638 4,050 4,142 4,765 8,883 5,341 6,024 7,230 8,497 6,025 6,319 7,306 8,239
Provision for income taxes 68 83 83 99 98 111 114 125 123 149 126 178 155 184 196 179 271 310 302 301 331 399 561 569 539 637 720 731 820 1,068 1,032 1,186 1,129 1,255 1,228 1,242 1,271 1,293 1,207 33 319 771 1,005 425 1,006 731 1,055 731 1,287 763 964 1,014 1,245 1,706 1,262 161 1,411 1,484 1,338 1,430 1,563 1,179 2,045 1,249 1,927 2,113 422 1,671 1,618 1,464 1,073 1,097 1,191 2,221 1,335 1,506 1,820 1,863 793 445 1,568 1,615
Income before accounting change 144 175 179 210 209 236 243 265 239 289 256 362 316 373 396 368 499 575 562 559 614 741 1,042 1,057 663 1,133 1,337 1,357 1,683 1,983 1,917 2,202 2,191 2,436 2,385 2,409 2,581 2,624 2,451 65 678 1,639 2,135 903 2,041 1,865 2,142 1,483 2,614 1,549 1,315 2,690 2,528 3,463 2,563 3,700 3,141 3,653 2,977 2,828 3,478 2,626 4,926 3,035 4,289 4,707 4,388 4,297 4,373 4,174 2,977 3,045 3,574 6,662 4,006 4,518 5,410 6,634 5,232 5,874 5,738 6,624
Cumulative effect of accounting change 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (375) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net income $ 144 $ 175 $ 179 $ 210 $ 209 $ 236 $ 243 $ 265 $ 239 $ 289 $ 256 $ 362 $ 316 $ 373 $ 396 $ 368 $ 499 $ 575 $ 562 $ 559 $ 614 $ 741 $ 1,042 $ 1,057 $ 663 $ 1,133 $ 1,337 $ 1,357 $ 1,683 $ 1,983 $ 1,917 $ 2,202 $ 2,191 $ 2,436 $ 2,385 $ 2,409 $ 2,206 $ 2,624 $ 2,451 $ 65 $ 678 $ 1,639 $ 2,135 $ 903 $ 2,041 $ 1,865 $ 2,142 $ 1,483 $ 2,614 $ 1,549 $ 1,315 $ 2,690 $ 2,528 $ 3,463 $ 2,563 $ 3,700 $ 3,141 $ 3,653 $ 2,977 $ 2,828 $ 3,478 $ 2,626 $ 4,926 $ 3,035 $ 4,289 $ 4,707 $ 4,388 $ 4,297 $ 4,373 $ 4,174 $ 2,977 $ 3,045 $ 3,574 $ 6,662 $ 4,006 $ 4,518 $ 5,410 $ 6,634 $ 5,232 $ 5,874 $ 5,738 $ 6,624
Preferred stock dividends 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (6) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net income available for common shareholders $ 144 $ 175 $ 179 $ 210 $ 209 $ 236 $ 243 $ 265 $ 239 $ 289 $ 256 $ 362 $ 316 $ 373 $ 396 $ 368 $ 499 $ 575 $ 562 $ 559 $ 614 $ 740 $ 1,035 $ 1,050 $ 656 $ 1,126 $ 1,330 $ 1,350 $ 1,676 $ 1,976 $ 1,910 $ 2,195 $ 2,184 $ 2,430 $ 2,385 $ 2,409 $ 2,206 $ 2,624 $ 2,451 $ 65 $ 678 $ 1,639 $ 2,135 $ 903 $ 2,041 $ 1,865 $ 2,142 $ 1,483 $ 2,614 $ 1,549 $ 1,315 $ 2,690 $ 2,528 $ 3,463 $ 2,563 $ 3,700 $ 3,141 $ 3,653 $ 2,977 $ 2,828 $ 3,478 $ 2,626 $ 4,926 $ 3,035 $ 4,289 $ 4,707 $ 4,388 $ 4,297 $ 4,373 $ 4,174 $ 2,977 $ 3,045 $ 3,574 $ 6,662 $ 4,006 $ 4,518 $ 5,410 $ 6,634 $ 5,232 $ 5,874 $ 5,738 $ 6,624
Basic earnings per share before accounting change $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.04 $ 0.03 $ 0.04 $ 0.04 $ 0.04 $ 0.05 $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.08 $ 0.11 $ 0.11 $ 0.07 $ 0.12 $ 0.14 $ 0.14 $ 0.17 $ 0.20 $ 0.19 $ 0.22 $ 0.21 $ 0.24 $ 0.23 $ 0.23 $ 0.24 $ 0.25 $ 0.23 $ 0.01 $ 0.06 $ 0.15 $ 0.20 $ 0.08 $ 0.19 $ 0.17 $ 0.20 $ 0.14 $ 0.24 $ 0.14 $ 0.12 $ 0.25 $ 0.23 $ 0.32 $ 0.24 $ 0.34 $ 0.29 $ 0.35 $ 0.29 $ 0.28 $ 0.35 $ 0.27 $ 0.51 $ 0.32 $ 0.46 $ 0.50 $ 0.47 $ 0.46 $ 0.48 $ 0.47 $ 0.33 $ 0.34 $ 0.40 $ 0.75 $ 0.46 $ 0.52 $ 0.63 $ 0.78 $ 0.62 $ 0.70 $ 0.68 $ 0.79
Diluted earnings per share before accounting change $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.03 $ 0.02 $ 0.03 $ 0.03 $ 0.04 $ 0.03 $ 0.04 $ 0.04 $ 0.04 $ 0.05 $ 0.06 $ 0.05 $ 0.05 $ 0.06 $ 0.07 $ 0.10 $ 0.10 $ 0.06 $ 0.11 $ 0.12 $ 0.13 $ 0.15 $ 0.18 $ 0.17 $ 0.20 $ 0.20 $ 0.22 $ 0.22 $ 0.22 $ 0.23 $ 0.24 $ 0.22 $ 0.01 $ 0.06 $ 0.15 $ 0.19 $ 0.08 $ 0.19 $ 0.17 $ 0.20 $ 0.14 $ 0.24 $ 0.14 $ 0.12 $ 0.25 $ 0.23 $ 0.32 $ 0.23 $ 0.34 $ 0.29 $ 0.34 $ 0.29 $ 0.28 $ 0.35 $ 0.26 $ 0.50 $ 0.31 $ 0.45 $ 0.50 $ 0.47 $ 0.46 $ 0.48 $ 0.47 $ 0.33 $ 0.34 $ 0.40 $ 0.74 $ 0.45 $ 0.51 $ 0.62 $ 0.77 $ 0.61 $ 0.69 $ 0.68 $ 0.78
Basic earnings per share $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.04 $ 0.03 $ 0.04 $ 0.04 $ 0.04 $ 0.05 $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.08 $ 0.11 $ 0.11 $ 0.07 $ 0.12 $ 0.14 $ 0.14 $ 0.17 $ 0.20 $ 0.19 $ 0.22 $ 0.21 $ 0.24 $ 0.23 $ 0.23 $ 0.21 $ 0.25 $ 0.23 $ 0.01 $ 0.06 $ 0.15 $ 0.20 $ 0.08 $ 0.19 $ 0.17 $ 0.20 $ 0.14 $ 0.24 $ 0.14 $ 0.12 $ 0.25 $ 0.23 $ 0.32 $ 0.24 $ 0.34 $ 0.29 $ 0.35 $ 0.29 $ 0.28 $ 0.35 $ 0.27 $ 0.51 $ 0.32 $ 0.46 $ 0.50 $ 0.47 $ 0.46 $ 0.48 $ 0.47 $ 0.33 $ 0.34 $ 0.40 $ 0.75 $ 0.46 $ 0.52 $ 0.63 $ 0.78 $ 0.62 $ 0.70 $ 0.68 $ 0.79
Diluted earnings per share $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.03 $ 0.02 $ 0.03 $ 0.03 $ 0.04 $ 0.03 $ 0.04 $ 0.04 $ 0.04 $ 0.05 $ 0.06 $ 0.05 $ 0.05 $ 0.06 $ 0.07 $ 0.10 $ 0.10 $ 0.06 $ 0.11 $ 0.12 $ 0.13 $ 0.15 $ 0.18 $ 0.17 $ 0.20 $ 0.20 $ 0.22 $ 0.22 $ 0.22 $ 0.20 $ 0.24 $ 0.22 $ 0.01 $ 0.06 $ 0.15 $ 0.19 $ 0.08 $ 0.19 $ 0.17 $ 0.20 $ 0.14 $ 0.24 $ 0.14 $ 0.12 $ 0.25 $ 0.23 $ 0.32 $ 0.23 $ 0.34 $ 0.29 $ 0.34 $ 0.29 $ 0.28 $ 0.35 $ 0.26 $ 0.50 $ 0.31 $ 0.45 $ 0.50 $ 0.47 $ 0.46 $ 0.48 $ 0.47 $ 0.33 $ 0.34 $ 0.40 $ 0.74 $ 0.45 $ 0.51 $ 0.62 $ 0.77 $ 0.61 $ 0.69 $ 0.68 $ 0.78
1 Not restated for adoption of the current accounting guidance on stock-based compensation and no recast of gains (losses) on foreign currency remeasurement
2 Recast of gains (losses) on foreign currency remeasurement
3 No recast of gains (losses) on foreign currency remeasurement
4 Includes expensed acquired in-process technology
5 Includes employee severance

Fin Operating Segment History

Microsoft Corporation Back to Main
Segment Revenue and Operating Income (Loss)
(In millions)
Revenue Q1-11 Q2-11 Q3-11 Q4-11 Fiscal Year 2011 Q1-12 Q2-12 Q3-12 Q4-12 Fiscal Year 2012
Windows & Windows Live Division $ 4,787 $ 5,056 $ 4,447 $ 4,743 $ 19,033 $ 4,868 $ 4,736 $ 9,604
Server and Tools 3,861 4,288 4,007 4,524 16,680 4,250 4,772 9,022
Online Services Division 547 713 667 680 2,607 641 784 1,425
Microsoft Business Division 5,202 6,110 5,329 5,873 22,514 5,607 6,279 11,886
Entertainment and Devices Division 1,795 3,698 1,935 1,487 8,915 1,961 4,237 6,198
Unallocated and other 3 88 43 60 194 45 77 122
Consolidated $ 16,195 $ 19,953 $ 16,428 $ 17,367 $ 69,943 $ 17,372 $ 20,885 $ 38,257
Operating Income (Loss) Q1-11 Q2-11 Q3-11 Q4-11 Fiscal Year 2011 Q1-12 Q2-12 Q3-12 Q4-12 Fiscal Year 2012
Windows & Windows Live Division $ 3,288 $ 3,214 $ 2,788 $ 2,904 $ 12,194 $ 3,251 $ 2,850 $ 6,101
Server and Tools 1,537 1,711 1,349 1,684 6,281 1,597 1,996 3,593
Online Services Division (573) (559) (775) (744) (2,651) (513) (458) (971)
Microsoft Business Division 3,483 4,087 3,308 3,755 14,633 3,687 4,152 7,839
Entertainment and Devices Division 384 666 213 24 1,287 349 528 877
Corporate-level activity (1,003) (954) (1,174) (1,452) (4,583) (1,168) (1,074) (2,242)
Consolidated $ 7,116 $ 8,165 $ 5,709 $ 6,171 $ 27,161 $ 7,203 $ 7,994 $ 15,197

Unearned Revenue

Unearned Revenue by Business Back to Main
Q1-061 Q2-061 Q3-061 Q4-061 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-112 Q2-112 Q3-112 Q4-112 Q1-12 Q2-12
Unearned Revenue ($ in millions)
Windows & Windows Live Division $ 2,636 $ 2,661 $ 2,658 $ 2,851 $ 2,804 $ 3,953 $ 2,684 $ 2,875 $ 2,673 $ 2,620 $ 2,524 $ 2,738 $ 2,402 $ 2,178 $ 2,015 $ 2,345 $ 3,638 $ 1,736 $ 1,498 $ 1,701 $ 1,570 $ 1,467 $ 1,370 $ 1,782 $ 1,628 $ 1,525
Server and Tools 2,269 2,298 2,394 2,910 2,648 2,702 2,825 3,652 3,449 3,746 3,890 5,007 4,424 4,303 4,104 4,732 4,424 4,227 4,242 5,282 4,812 4,785 4,706 6,315 5,720 5,612
Microsoft Business Division 3,537 3,527 3,476 4,783 4,301 4,863 4,341 5,771 5,080 5,359 5,253 7,101 6,204 6,077 5,593 6,508 5,920 5,680 5,657 7,004 6,748 6,324 6,013 8,187 7,428 7,085
Other 364 352 373 358 344 343 433 348 370 453 472 451 447 508 600 699 786 885 863 843 789 841 930 836 882 1,112
Total $ 8,806 $ 8,838 $ 8,901 $ 10,902 $ 10,097 $ 11,861 $ 10,283 $ 12,646 $ 11,572 $ 12,178 $ 12,139 $ 15,297 $ 13,477 $ 13,066 $ 12,312 $ 14,284 $ 14,768 $ 12,528 $ 12,260 $ 14,830 $ 13,919 $ 13,417 $ 13,019 $ 17,120 $ 15,658 $ 15,334
Unearned Revenue (in %)
Windows & Windows Live Division 30% 30% 30% 26% 28% 33% 26% 23% 23% 22% 21% 18% 18% 17% 16% 16% 25% 14% 12% 11% 11% 11% 11% 10% 10% 10%
Server and Tools 26% 26% 27% 27% 26% 23% 28% 29% 30% 31% 32% 33% 33% 33% 33% 33% 30% 34% 35% 36% 35% 36% 36% 37% 37% 37%
Microsoft Business Division 40% 40% 39% 44% 43% 41% 42% 45% 44% 43% 43% 46% 46% 46% 46% 46% 40% 45% 46% 47% 48% 47% 46% 48% 47% 46%
Other 4% 4% 4% 3% 3% 3% 4% 3% 3% 4% 4% 3% 3% 4% 5% 5% 5% 7% 7% 6% 6% 6% 7% 5% 6% 7%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
1 FY '06 amounts have been restated for FY '07 business segments.
2 FY '11 amounts have been recast for the FY '12 movement of Forefront Protection for Office from Server and Tools to the Microsoft Business Division.

Yearly Income Statements

Microsoft Corporation Back to Main
Yearly Income Statements
(In millions, except earnings per share)
FY921 FY931 FY941 FY951 FY961 FY971 FY981 FY991 FY001 FY011 FY023 FY033 FY042 FY052 FY062 FY072 FY082 FY09 FY10 FY11 FY12
Revenue $ 2,777 $ 3,786 $ 4,714 $ 6,075 $ 9,050 $ 11,936 $ 15,262 $ 19,747 $ 22,956 $ 25,296 $ 28,365 $ 32,187 $ 36,835 $ 39,788 $ 44,282 $ 51,122 $ 60,420 $ 58,437 $ 62,484 $ 69,943
Operating expenses:
Cost of revenue 581 785 1,077 1,346 2,145 2,170 2,460 2,814 3,002 3,455 5,699 6,059 6,596 6,031 7,650 10,693 11,598 12,155 12,395 15,577
Research and development 4 352 470 610 860 1,326 1,863 2,897 2,970 3,772 4,379 6,299 6,595 7,735 6,097 6,584 7,121 8,164 9,010 8,714 9,043
Sales and marketing 758 1,086 1,135 1,564 2,185 2,411 2,887 3,238 4,126 4,885 6,252 7,562 8,121 8,548 9,910 11,541 13,260 12,879 13,214 13,940
General and administrative 5 90 119 166 267 316 362 433 715 1,050 857 1,843 2,426 5,275 4,536 3,758 3,329 5,127 4,030 4,063 4,222
Other expenses 11 7 16 16 19 259 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total operating expenses 1,792 2,467 3,004 4,053 5,991 7,065 8,677 9,737 11,950 13,576 20,093 22,642 27,727 25,212 27,902 32,684 38,149 38,074 38,386 42,782
Operating income 985 1,319 1,710 2,022 3,059 4,871 6,585 10,010 11,006 11,720 8,272 9,545 9,108 14,576 16,380 18,438 22,271 20,363 24,098 27,161
Other income (expense) 56 82 102 191 320 443 532 1,881 3,269 (195) (397) 1,509 3,088 2,052 1,882 1,663 1,543 (542) 915 910
Noncontinuing items 0 0 (90) (46) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Income before income taxes 1,041 1,401 1,722 2,167 3,379 5,314 7,117 11,891 14,275 11,525 7,875 11,054 12,196 16,628 18,262 20,101 23,814 19,821 25,013 28,071
Provision for income taxes 333 448 576 714 1,184 1,860 2,627 4,106 4,854 3,804 2,520 3,523 4,028 4,374 5,663 6,036 6,133 5,252 6,253 4,921
Net income before accounting change 708 953 1,146 1,453 2,195 3,454 4,490 7,785 9,421 7,721 5,355 7,531 8,168 12,254 12,599 14,065 17,681 14,569 18,760 23,150
Cummulative effect of accounting change 0 0 0 0 0 0 0 0 0 (375) 0 0 0 0 0 0 0 0 0 0
Net Income 708 953 1,146 1,453 2,195 3,454 4,490 7,785 9,421 7,346 5,355 7,531 8,168 12,254 12,599 14,065 17,681 14,569 18,760 23,150
Preferred stock dividends 0 0 0 0 0 (15) (28) (28) (13) 0 0 0 0 0 0 0 0 0 0 0
Net income available for common shareholders $ 708 $ 953 $ 1,146 $ 1,453 $ 2,195 $ 3,439 $ 4,462 $ 7,757 $ 9,408 $ 7,346 $ 5,355 $ 7,531 $ 8,168 $ 12,254 $ 12,599 $ 14,065 $ 17,681 $ 14,569 $ 18,760 $ 23,150
Basic earnings per share before accounting change $ 0.08 $ 0.11 $ 0.13 $ 0.16 $ 0.23 $ 0.36 $ 0.46 $ 0.77 $ 0.91 $ 0.72 $ 0.50 $ 0.70 $ 0.76 $ 1.13 $ 1.21 $ 1.44 $ 1.90 $ 1.63 $ 2.13 $ 2.73
Diluted earnings per share before accounting change $ 0.08 $ 0.10 $ 0.12 $ 0.14 $ 0.21 $ 0.33 $ 0.42 $ 0.71 $ 0.85 $ 0.69 $ 0.48 $ 0.69 $ 0.75 $ 1.12 $ 1.20 $ 1.42 $ 1.87 $ 1.62 $ 2.10 $ 2.69
Basic earnings per share $ 0.08 $ 0.11 $ 0.13 $ 0.16 $ 0.23 $ 0.36 $ 0.46 $ 0.77 $ 0.91 $ 0.69 $ 0.50 $ 0.70 $ 0.76 $ 1.13 $ 1.21 $ 1.44 $ 1.90 $ 1.63 $ 2.13 $ 2.73
Diluted earnings per share $ 0.08 $ 0.10 $ 0.12 $ 0.14 $ 0.21 $ 0.33 $ 0.42 $ 0.71 $ 0.85 $ 0.66 $ 0.48 $ 0.69 $ 0.75 $ 1.12 $ 1.20 $ 1.42 $ 1.87 $ 1.62 $ 2.10 $ 2.69
1 Not restated for adoption of the current accounting guidance on stock-based compensation and no recast of gains (losses) on foreign currency remeasurement
2 Recast of gains (losses) on foreign currency remeasurement
3 No recast of gains (losses) on foreign currency remeasurement
4 Includes expensed acquired in-process technology
5 Includes employee severance