Common stock issued. Common stock repurchased. Common stock cash dividends paid. Net cash used in financing. 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. Net cash used in investing. Effect of exchange rates on cash and cash equivalents. Net change in cash and cash equivalents.
Cash and cash equivalents, beginning of period. Cash and cash equivalents, end of period. Server and Tools. Online Services Division. Microsoft Business Division. Entertainment and Devices Division. Unallocated and other. Operating income loss. Corporate-level activity. As businesses invest in the Microsoft platform and our roadmap, they are doing so by attaching additional seats and additional products and services to their multi-year enterprise agreements.
Excluding the goodwill impairment charge and changes in cost of revenue, other operating expenses were flat reflecting our ongoing cost management.
Our effective tax rate increased over the prior year due mainly to the non-tax deductible goodwill impairment charge in the current year. Our effective tax rate for the fourth quarter of fiscal year was low due mainly to the reduction of our previously estimated effective tax rate for the year to reflect the actual full year mix of foreign and U.
Qualifying purchases must be made between June 2, and January 31, , and offers must be redeemed by February 28, The deferral impacted only the timing of revenue recognition and not cash flows from operations during the periods reported.
During the quarter, we launched the release preview of Windows 8. We have announced that Windows 8 will become generally available in October We also released an update to Windows Azure, which gives customers a choice of platform and infrastructure services and is designed to make it easier to build, migrate, and manage applications in the cloud.
The non-cash, non-tax-deductible charge related mainly to goodwill acquired through our acquisition of aQuantive, Inc. While our search business has been improving, our expectations for future growth and profitability for OSD are lower than our previous estimates. On June 25, , we announced that we had entered into a definitive agreement to purchase Yammer, Inc. The agreement, which closed on July 18, , will bring enterprise social networking features to our existing communication and collaboration products.
Within the Xbox platform:. Even in the soft console market, Xbox maintained its market share leadership position in the U.
In June , we announced that the next version of our Windows Phone operating system will be based on the same core as the Windows PC operating system. This will enable a wave of new mobile scenarios for consumers, developers, and IT professionals. Cost of revenue increased primarily due to payments made to Nokia related to joint strategic initiatives and the addition of Skype.
Research and development expenses increased primarily reflecting higher headcount-related expenses, including Skype. Corporate-Level Activity. Current assets:. Cash and cash equivalents. Short-term investments. Total cash, cash equivalents, and short-term investments. Other current assets. Total current assets. Operating lease right-of-use assets. Equity investments. Intangible assets, net. Other long-term assets.
Total assets. Liabilities and stockholders' equity. Current liabilities:. Accounts payable. Current portion of long-term debt. Accrued compensation. Short-term income taxes. Short-term unearned revenue. Other current liabilities. Total current liabilities. Long-term debt. Long-term income taxes. Long-term unearned revenue.
Deferred income taxes. Operating lease liabilities. Other long-term liabilities. Total liabilities. Commitments and contingencies. Stockholders' equity:. Common stock and paid-in capital - shares authorized 24,; outstanding 7, and 7, Retained earnings. Accumulated other comprehensive income loss. Total stockholders' equity. Total liabilities and stockholders' equity. Adjustments to reconcile net income to net cash from operations:. Depreciation, amortization, and other.
Stock-based compensation expense. Net recognized gains on investments and derivatives. Changes in operating assets and liabilities:. Accounts receivable. Unearned revenue. Income taxes. Net cash from operations. Search revenue grew due to increased volumes reflecting general market growth, relative share gains in the U. S, and our Yahoo! As of June 30, , according to third-party sources, Bing organic U. OSD operating loss increased due to higher cost of revenue, offset in part by increased revenue.
OSD operating loss increased due to higher operating expenses, offset in part by increased revenue. We evaluate MBD results based upon the nature of the end user in two primary parts: business revenue, which includes Microsoft Office system revenue generated through volume licensing agreements and Microsoft Dynamics revenue; and consumer revenue, which includes revenue from retail packaged product sales and OEM revenue.
MBD revenue increased reflecting sales of the Microsoft Office system, which was released primarily during the fourth quarter of fiscal year MBD operating income increased due mainly to revenue growth as well as decreased sales and marketing expenses, offset in part by higher cost of revenue.
MBD operating income increased due mainly to revenue growth, offset in part by higher operating expenses. EDD revenue increased primarily reflecting higher Xbox platform revenue. We shipped 1. EDD operating income increased primarily reflecting revenue growth, offset in part by higher cost of revenue. We shipped Corporate-Level Activity. Certain corporate-level activity is not allocated to our segments, including costs of: broad-based sales and marketing; product support services; human resources; legal; finance; information technology; corporate development and procurement activities; research and development; and legal settlements and contingencies.
Corporate-level expenses increased due mainly to new Puerto Rican excise taxes, certain revenue related sales and marketing expenses, and increased headcount-related expenses. Cost of Revenue. As a percent of revenue. Cost of revenue increased primarily due to higher costs associated with our online offerings, including traffic acquisition costs, and higher expenses from providing Enterprise Services, as well as increased volumes of Xbox consoles sold and royalty costs relating to Xbox LIVE digital content sold.
Cost of revenue increased primarily due to increased volumes of Xbox consoles and Kinect sensors sold, higher costs associated with our online offerings, including traffic acquisition costs, and higher expenses from providing Enterprise Services, as well as royalty costs relating to Xbox LIVE digital content sold. Research and Development.
Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third-party development and programming costs, localization costs incurred to translate software for international markets, and the amortization of purchased software code and services content.
Sales and Marketing. Sales and marketing expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with sales and marketing personnel and the costs of advertising, promotions, trade shows, seminars, and other programs. General and Administrative. General and administrative expenses include payroll, employee benefits, stock-based compensation expense, severance expense, and other headcount-related expenses associated with finance, legal, facilities, certain human resources and other administrative personnel, certain taxes, and legal and other administrative fees.
Other Income Expense. The components of other income expense were as follows:. Dividends and interest income. Interest expense.
Net recognized gains on investments. Net losses on derivatives. Net gains losses on foreign currency remeasurements. Dividends and interest income increased due to higher average portfolio investment balances, offset in part by lower yields on our fixed income investments. Interest expense increased due to our increased issuance of debt. Net recognized gains on investments increased due primarily to higher gains on sales of fixed-income and equity securities. Derivative losses decreased due primarily to lower losses on currency contracts used to hedge foreign currency revenues and interest-rate and equity derivatives, offset in part by higher losses on commodity derivatives.
Net recognized gains on investments increased due primarily to higher gains on sales of equity securities, offset in part by fewer gains on sales of fixed-income securities. Derivative losses decreased due primarily to higher gains on commodity derivatives offset in part by higher losses on currency contracts used to hedge foreign currency revenue.
Income Taxes. Our effective tax rate was lower than the U. Our effective tax rate was lower than in the prior year due mainly to the adjustment of our previously estimated effective tax rate for the year to reflect the actual full year mix of foreign and U. In addition, upon completion of our annual domestic and foreign tax returns, we adjusted the estimated tax provision to reflect the tax returns filed and recorded an income tax benefit which lowered our effective tax rate.
In fiscal years and , our U. In fiscal years and , the reduction of the U. In addition, our effective tax rate was lower than in the prior year due to a partial settlement with the I. Unearned revenue at June 30, comprised mainly unearned revenue from volume licensing programs. Unearned revenue from volume licensing programs represents customer billings for multi-year licensing arrangements paid for either at inception of the agreement or annually at the beginning of each billing coverage period and accounted for as subscriptions with revenue recognized ratably over the billing coverage period.
The following table outlines the expected future recognition of unearned revenue as of June 30, In millions. Three months ended:. Its Intelligent Cloud business is seemingly unstoppable, growing by 30 percent compared to last year. And it's still seeing plenty of growth with Office, Linkedin and its other business apps, which together have increased revenues by 25 percent.
Even its More Personal Computing group, which includes Windows and Xbox, saw its business improve by 9 percent. Thatcategory saw a few dips in the quarter though: Surface business fell by 20 percent, and Xbox content and services saw a 4 percent drop.
0コメント