Microsoft : Financial Statements FY22 Q2

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Microsoft Financial Data - FY22Q2
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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.

Income Statements

MICROSOFT CORPORATION	Back to Main
INCOME STATEMENTS
(In millions, except per share amounts) (Unaudited)
Three Months Ended December 31,	Six Months Ended December 31,
2021	2020	2021	2020
Revenue:
Product	$20,779	$19,460	$37,410	$35,263
Service and other	30,949	23,616	59,635	44,967
Total revenue	51,728	43,076	97,045	80,230
Cost of revenue:
Product	6,331	6,058	10,123	9,655
Service and other	10,629	8,136	20,483	15,541
Total cost of revenue	16,960	14,194	30,606	25,196
Gross margin	34,768	28,882	66,439	55,034
Research and development	5,758	4,899	11,357	9,825
Sales and marketing	5,379	4,947	9,926	9,178
General and administrative	1,384	1,139	2,671	2,258
Operating income	22,247	17,897	42,485	33,773
Other income, net	268	440	554	688
Income before income taxes	22,515	18,337	43,039	34,461
Provision for income taxes	3,750	2,874	3,769	5,105
Net income	$18,765	$15,463	$39,270	$29,356
Earnings per share:
Basic	$2.50	$2.05	$5.23	$3.88
Diluted	$2.48	$2.03	$5.19	$3.85
Weighted average shares outstanding:
Basic	7,505	7,555	7,509	7,561
Diluted	7,555	7,616	7,561	7,627

Comprehensive Income

MICROSOFT CORPORATION	Back to Main
COMPREHENSIVE INCOME STATEMENTS
(In millions) (Unaudited)
Three Months Ended December 31,	Six Months Ended December 31,
2021	2020	2021	2020
Net income	$18,765	$15,463	$39,270	$29,356
Other comprehensive income (loss), net of tax:
Net change related to derivatives	0	8	2	12
Net change related to investments	(743)	(492)	(1,165)	(693)
Translation adjustments and other	(103)	741	(222)	852
Other comprehensive income (loss)	(846)	257	(1,385)	171
Comprehensive income	$17,919	$15,720	$37,885	$29,527

Balance Sheets

MICROSOFT CORPORATION	Back to Main
BALANCE SHEETS
(In millions) (Unaudited)
December 31, 2021	June 30, 2021
Assets
Current assets:
Cash and cash equivalents	$20,604	$14,224
Short-term investments	104,765	116,110
Total cash, cash equivalents, and short-term investments	125,369	130,334
Accounts receivable, net of allowance for doubtful accounts of $551 and $751	33,520	38,043
Inventories	3,019	2,636
Other current assets	12,280	13,393
Total current assets	174,188	184,406
Property and equipment, net of accumulated depreciation of $55,277 and $51,351	67,214	59,715
Operating lease right-of-use assets	12,354	11,088
Equity investments	6,994	5,984
Goodwill	50,921	49,711
Intangible assets, net	7,462	7,800
Other long-term assets	21,256	15,075
Total assets	$340,389	$333,779
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$15,314	$15,163
Current portion of long-term debt	4,998	8,072
Accrued compensation	7,782	10,057
Short-term income taxes	3,731	2,174
Short-term unearned revenue	34,001	41,525
Other current liabilities	11,684	11,666
Total current liabilities	77,510	88,657
Long-term debt	48,260	50,074
Long-term income taxes	26,121	27,190
Long-term unearned revenue	2,768	2,616
Deferred income taxes	199	198
Operating lease liabilities	10,774	9,629
Other long-term liabilities	14,747	13,427
Total liabilities	180,379	191,791
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,500 and 7,519	84,528	83,111
Retained earnings	75,045	57,055
Accumulated other comprehensive income	437	1,822
Total stockholders' equity	160,010	141,988
Total liabilities and stockholders' equity	$340,389	$333,779

Cash Flows

MICROSOFT CORPORATION	Back to Main
CASH FLOWS STATEMENTS
(In millions) (Unaudited)
Three Months Ended December 31,	Six Months Ended December 31,
2021	2020	2021	2020
Operations
Net income	$18,765	$15,463	$39,270	$29,356
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	3,496	2,761	6,708	5,406
Stock-based compensation expense	1,897	1,566	3,599	3,022
Net recognized gains on investments and derivatives	(307)	(354)	(671)	(482)
Deferred income taxes	183	(17)	(5,787)	(28)
Changes in operating assets and liabilities:
Accounts receivable	(5,543)	(4,008)	4,943	4,835
Inventories	394	788	(383)	(20)
Other current assets	830	730	1,770	676
Other long-term assets	(908)	(1,499)	(1,506)	(1,561)
Accounts payable	235	33	(236)	348
Unearned revenue	(4,343)	(3,227)	(7,228)	(6,291)
Income taxes	(2,057)	(2,368)	596	(3,351)
Other current liabilities	1,745	1,755	(2,398)	(1,196)
Other long-term liabilities	93	893	343	1,137
Net cash from operations	14,480	12,516	39,020	31,851
Financing
Repayments of debt	0	(3,250)	(4,826)	(3,250)
Common stock issued	291	302	903	847
Common stock repurchased	(7,433)	(6,535)	(15,117)	(13,278)
Common stock cash dividends paid	(4,652)	(4,230)	(8,858)	(8,086)
Other, net	(192)	79	(364)	(156)
Net cash used in financing	(11,986)	(13,634)	(28,262)	(23,923)
Investing
Additions to property and equipment	(5,865)	(4,174)	(11,675)	(9,081)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets	(850)	(415)	(2,056)	(896)
Purchases of investments	(2,505)	(15,092)	(12,814)	(29,672)
Maturities of investments	5,253	15,264	14,115	29,530
Sales of investments	2,895	2,421	8,525	4,835
Other, net	(89)	327	(506)	(1,756)
Net cash used in investing	(1,161)	(1,669)	(4,411)	(7,040)
Effect of foreign exchange rates on cash and cash equivalents	106	14	33	(32)
Net change in cash and cash equivalents	1,439	(2,773)	6,380	856
Cash and cash equivalents, beginning of period	19,165	17,205	14,224	13,576
Cash and cash equivalents, end of period	$20,604	$14,432	$20,604	$14,432

Segment Revenue & OI

MICROSOFT CORPORATION	Back to Main
SEGMENT REVENUE AND OPERATING INCOME
(In millions) (Unaudited)
Three Months Ended December 31,	Six Months Ended December 31,
2021	2020	2021	2020
Revenue
Productivity and Business Processes	$15,936	$13,353	$30,975	$25,672
Intelligent Cloud	18,327	14,601	35,291	27,587
More Personal Computing	17,465	15,122	30,779	26,971
Total	$51,728	$43,076	$97,045	$80,230
Operating Income
Productivity and Business Processes	$7,688	$6,181	$15,269	$11,887
Intelligent Cloud	8,197	6,492	15,759	11,914
More Personal Computing	6,362	5,224	11,457	9,972
Total	$22,247	$17,897	$42,485	$33,773

Quarterly Income Statements

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	Q1-18	Q2-18	Q3-18	Q4-18	Q1-19	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20	Q3-20	Q4-20	Q1-21	Q2-21	Q3-21	Q4-21	Q1-22	Q2-22
Revenue:
Product	$15,750	$19,431	$15,307	$16,848	$14,968	$18,273	$14,513	$16,057	$14,298	$17,926	$15,114	$17,159	$17,299	$16,219	$15,448	$17,103	$15,768	$18,255	$15,871	$18,147	$15,803	$19,460	$16,873	$18,938	$16,631	$20,779
Service and other	5,160	5,822	6,210	6,626	6,960	7,553	8,699	9,548	10,240	10,992	11,705	12,926	11,785	16,252	15,123	16,614	17,287	18,651	19,150	19,886	21,351	23,616	24,833	27,214	28,686	30,949
Total revenue	20,910	25,253	21,517	23,474	21,928	25,826	23,212	25,605	24,538	28,918	26,819	30,085	29,084	32,471	30,571	33,717	33,055	36,906	35,021	38,033	37,154	43,076	41,706	46,152	45,317	51,728
Cost of revenue:
Product	4,035	6,268	3,801	3,776	3,581	5,378	3,075	3,141	2,980	5,498	3,425	3,517	3,649	5,885	3,441	3,298	3,305	4,966	3,376	4,370	3,597	6,058	4,277	4,287	3,792	6,331
Service and other	3,172	3,604	3,921	4,203	4,263	4,523	4,985	5,315	5,298	5,566	5,844	6,225	6,256	6,538	6,729	7,114	7,101	7,392	7,599	7,969	7,405	8,136	8,768	9,704	9,854	10,629
Total cost of revenue	7,207	9,872	7,722	7,979	7,844	9,901	8,060	8,456	8,278	11,064	9,269	9,742	9,905	12,423	10,170	10,412	10,406	12,358	10,975	12,339	11,002	14,194	13,045	13,991	13,646	16,960
Gross margin	13,703	15,381	13,795	15,495	14,084	15,925	15,152	17,149	16,260	17,854	17,550	20,343	19,179	20,048	20,401	23,305	22,649	24,548	24,046	25,694	26,152	28,882	28,661	32,161	31,671	34,768
Research and development	2,962	2,900	2,980	3,146	3,106	3,062	3,355	3,514	3,574	3,504	3,715	3,933	3,977	4,070	4,316	4,513	4,565	4,603	4,887	5,214	4,926	4,899	5,204	5,687	5,599	5,758
Sales and marketing	3,341	3,954	3,398	3,942	3,218	4,079	3,872	4,292	3,812	4,562	4,335	4,760	4,098	4,588	4,565	4,962	4,337	4,933	4,911	5,417	4,231	4,947	5,082	5,857	4,547	5,379
General and administrative	1,084	1,038	1,140	1,301	1,045	879	1,202	1,355	1,166	1,109	1,208	1,271	1,149	1,132	1,179	1,425	1,061	1,121	1,273	1,656	1,119	1,139	1,327	1,522	1,287	1,384
Impairment and restructuring	0	0	0	1,110	0	0	0	306	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Operating income	6,316	7,489	6,277	5,996	6,715	7,905	6,723	7,682	7,708	8,679	8,292	10,379	9,955	10,258	10,341	12,405	12,686	13,891	12,975	13,407	15,876	17,897	17,048	19,095	20,238	22,247
Other income (expense), net	(295)	(176)	(212)	244	112	117	371	276	276	490	349	301	266	127	145	191	0	194	(132)	15	248	440	188	310	286	268
Income before income taxes	6,021	7,313	6,065	6,240	6,827	8,022	7,094	7,958	7,984	9,169	8,641	10,680	10,221	10,385	10,486	12,596	12,686	14,085	12,843	13,422	16,124	18,337	17,236	19,405	0	22,515
Provision for (benefit from) income taxes	952	1,375	1,760	1,013	1,160	1,755	1,608	(111)	1,408	15,471	1,217	1,807	1,397	1,965	1,677	(591)	2,008	2,436	2,091	2,220	2,231	2,874	1,779	2,947	19	3,750
Net income	$5,069	$5,938	$4,305	$5,227	$5,667	$6,267	$5,486	$8,069	$6,576	$(6,302)	$7,424	$8,873	$8,824	$8,420	$8,809	$13,187	$10,678	$11,649	$10,752	$11,202	$13,893	$15,463	$15,457	$16,458	$20,505	$18,765
Earnings (loss) per share:
Basic	$0.63	$0.75	$0.55	$0.67	$0.73	$0.81	$0.71	$1.05	$0.85	$(0.82)	$0.96	$1.15	$1.15	$1.09	$1.15	$1.72	$1.40	$1.53	$1.41	$1.48	$1.84	$2.05	$2.05	$2.19	$2.73	$2.50
Diluted	$0.63	$0.74	$0.54	$0.66	$0.72	$0.80	$0.70	$1.03	$0.84	$(0.82)	$0.95	$1.14	$1.14	$1.08	$1.14	$1.71	$1.38	$1.51	$1.40	$1.46	$1.82	$2.03	$2.03	$2.17	$2.71	$2.48

Segment History

Microsoft Corporation	Back to Main
Segment Revenue and Operating Income
(In millions)
Revenue	Q1-21	Q2-21	Q3-21	Q4-21	Fiscal Year 2021	Q1-22	Q2-22	Q3-22	Q4-22	Fiscal Year 2022
Productivity and Business Processes	$12,319	$13,353	$13,552	$14,691	$53,915	$15,039	$15,936	$30,975
Intelligent Cloud	12,986	14,601	15,118	17,375	60,080	16,964	18,327	35,291
More Personal Computing	11,849	15,122	13,036	14,086	54,093	13,314	17,465	30,779
Total	$37,154	$43,076	$41,706	$46,152	$168,088	$45,317	$51,728	$97,045
Operating Income	Q1-21	Q2-21	Q3-21	Q4-21	Fiscal Year 2021	Q1-22	Q2-22	Q3-22	Q4-22	Fiscal Year 2022
Productivity and Business Processes	$5,706	$6,181	$6,029	$6,435	$24,351	$7,581	$7,688	$15,269
Intelligent Cloud	5,422	6,492	6,425	7,787	26,126	7,562	8,197	15,759
More Personal Computing	4,748	5,224	4,594	4,873	19,439	5,095	6,362	11,457
Total	$15,876	$17,897	$17,048	$19,095	$69,916	$20,238	$22,247	$42,485

Unearned Revenue

Microsoft Corporation	Back to Main
Unearned Revenue
Q1-16	Q2-16	Q3-16	Q4-16	Q1-17	Q2-17	Q3-17	Q4-17	Q1-18	Q2-18	Q3-18	Q4-18	Q1-19	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20	Q3-20	Q4-20	Q1-21	Q2-21	Q3-21	Q4-21	Q1-22	Q2-22
Unearned Revenue ($ in millions)
Productivity and Business Processes	$8,718	$8,257	$8,006	$10,673	$9,656	$9,839	$9,697	$12,692	$11,808	$11,290	$11,185	$14,864	$13,753	$12,635	$12,679	$16,831	$15,560	$14,266	$14,077	$18,643	$17,675	$16,225	$16,169	$22,120	$20,565	$18,494
Intelligent Cloud	7,107	6,702	6,679	8,913	8,057	7,676	7,735	11,152	10,156	9,759	9,987	14,706	13,298	12,551	12,531	16,988	15,255	13,766	12,984	16,620	15,039	13,786	13,098	17,710	16,117	14,549
More Personal Computing	2,366	2,393	2,427	2,607	2,657	2,476	2,472	2,812	2,940	2,760	2,783	3,150	3,191	2,898	2,925	3,387	3,211	3,189	3,336	3,917	3,591	3,376	3,447	4,311	4,333	3,726
Total	$18,191	$17,352	$17,112	$22,193	$20,370	$19,991	$19,904	$26,656	$24,904	$23,809	$23,955	$32,720	$30,242	$28,084	$28,135	$37,206	$34,026	$31,221	$30,397	$39,180	$36,305	$33,387	$32,714	$44,141	$41,015	$36,769
Unearned Revenue (in %)
Productivity and Business Processes	48%	47%	47%	48%	47%	49%	49%	48%	47%	47%	47%	45%	45%	45%	45%	45%	46%	46%	46%	48%	49%	49%	49%	50%	50%	50%
Intelligent Cloud	39%	39%	39%	40%	40%	39%	39%	42%	41%	41%	41%	45%	44%	45%	45%	46%	45%	44%	43%	42%	41%	41%	40%	40%	39%	40%
More Personal Computing	13%	14%	14%	12%	13%	12%	12%	10%	12%	12%	12%	10%	11%	10%	10%	9%	9%	10%	11%	10%	10%	10%	11%	10%	11%	10%
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%

Yearly Income Statements

Microsoft Corporation	Back to Main
Yearly Income Statements
(In millions, except per share amounts)
FY16	FY17	FY18	FY19	FY20	FY21
Revenue:
Product	$67,336	$63,811	$64,497	$66,069	$68,041	$71,074
Service and other	23,818	32,760	45,863	59,774	74,974	97,014
Total revenue	91,154	96,571	110,360	125,843	143,015	168,088
Cost of revenue:
Product	17,880	15,175	15,420	16,273	16,017	18,219
Service and other	14,900	19,086	22,933	26,637	30,061	34,013
Total cost of revenue	32,780	34,261	38,353	42,910	46,078	52,232
Gross margin	58,374	62,310	72,007	82,933	96,937	115,856
Research and development	11,988	13,037	14,726	16,876	19,269	20,716
Sales and marketing	14,635	15,461	17,469	18,213	19,598	20,117
General and administrative	4,563	4,481	4,754	4,885	5,111	5,107
Impairment and restructuring	1,110	306	0	0	0	0
Operating income	26,078	29,025	35,058	42,959	52,959	69,916
Other income (expense), net	(439)	876	1,416	729	77	1,186
Income before income taxes	25,639	29,901	36,474	43,688	53,036	71,102
Provision for income taxes	5,100	4,412	19,903	4,448	8,755	9,831
Net income	$20,539	$25,489	$16,571	$39,240	$44,281	$61,271
Earnings per share:
Basic	$2.59	$3.29	$2.15	$5.11	$5.82	$8.12
Diluted	$2.56	$3.25	$2.13	$5.06	$5.76	$8.05

Return of Cash to Shareholders

Microsoft Corporation	Back to Main
Return of Cash to Shareholders
(In billions, except per share amounts)
FY10	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20	FY21
Yearly
Dividend Per Share	$0.52	$0.64	$0.80	$0.92	$1.12	$1.24	$1.44	$1.56	$1.68	$1.84	$2.04	$2.24
Total Dividends	4.539	5.403	6.720	7.695	9.270	10.050	11.331	12.048	12.916	14.101	15.483	16.876
Share Buyback	10.836	11.458	4.000	4.607	6.409	13.209	14.800	10.283	8.600	16.799	19.688	22.970
Q2-05	Q3-05	Q4-05	Q1-06	Q2-06	Q3-06	Q4-06	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	Q1-11	Q2-11	Q3-11	Q4-11	Q1-12	Q2-12	Q3-12	Q4-12	Q1-13	Q2-13	Q3-13	Q4-13	Q1-14	Q2-14	Q3-14	Q4-14	Q1-15	Q2-15	Q3-15	Q4-15	Q1-16	Q2-16	Q3-16	Q4-16	Q1-17	Q2-17	Q3-17	Q4-17	Q1-18	Q2-18	Q3-18	Q4-18	Q1-19	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20	Q3-20	Q4-20	Q1-21	Q2-21	Q3-21	Q4-21	Q1-22	Q2-22
Quarterly
Dividend Per Share	$0.08	$0.08	$0.08	$0.08	$0.09	$0.09	$0.09	$0.10	$0.10	$0.10	$0.10	$0.11	$0.11	$0.11	$0.11	$0.13	$0.13	$0.13	$0.13	$0.13	$0.13	$0.13	$0.13	$0.16	$0.16	$0.16	$0.16	$0.20	$0.20	$0.20	$0.20	$0.23	$0.23	$0.23	$0.23	$0.28	$0.28	$0.28	$0.28	$0.31	$0.31	$0.31	$0.31	$0.36	$0.36	$0.36	$0.36	$0.39	$0.39	$0.39	$0.39	$0.42	$0.42	$0.42	$0.42	$0.46	$0.46	$0.46	$0.46	$0.51	$0.51	$0.51	$0.51	$0.56	$0.56	$0.56	$0.56	$0.62	$0.62
Total Dividends	0.868	0.860	0.857	0.846	0.926	0.916	0.897	0.980	0.978	0.952	0.938	1.034	1.023	1.020	0.998	1.157	1.155	1.158	1.157	1.152	1.139	1.130	1.118	1.363	1.349	1.350	1.341	1.683	1.683	1.678	1.676	1.933	1.925	1.921	1.916	2.332	2.322	2.309	2.307	2.547	2.532	2.496	2.475	2.868	2.842	2.821	2.800	3.024	3.012	3.009	3.003	3.238	3.232	3.226	3.220	3.544	3.526	3.521	3.510	3.886	3.876	3.865	3.856	4.230	4.221	4.214	4.211	4.652	4.650
Share Buyback	0.655	2.420	4.302	3.029	7.666	4.879	4.175	6.965	6.037	6.744	7.367	2.348	4.081	1.020	4.975	5.966	2.234	0	0	1.445	3.583	2.000	3.808	4.000	5.000	0.827	1.631	1.000	1.000	1.000	1.000	1.000	1.607	1.000	1.000	1.500	2.000	1.791	1.118	2.000	2.000	5.000	4.209	4.000	3.600	3.600	3.600	3.550	3.533	1.600	1.600	1.600	1.800	3.100	2.100	2.600	6.100	3.899	4.200	4.000	4.600	6.000	5.088	5.270	5.750	5.750	6.200	6.200	6.233

CapEx

Microsoft Corporation	Back to Main
Capital Expenditures Including Assets Acquired Under Capital Leases
(In billions)
Q1-16	Q2-16	Q3-16	Q4-16	Fiscal Year 2016	Q1-17	Q2-17	Q3-17	Q4-17	Fiscal Year 2017	Q1-18	Q2-18	Q3-18	Q4-18	Fiscal Year 2018	Q1-19	Q2-19	Q3-19	Q4-19	Fiscal Year 2019	Q1-20	Q2-20	Q3-20	Q4-20	Fiscal Year 2020	Q1-21	Q2-21	Q3-21	Q4-21	Fiscal Year 2021	Q1-22	Q2-22	Q3-22	Q4-22	Fiscal Year 2022
Capital expenditures including assets acquired under capital leases	$1.5	$2.0	$2.3	$3.1	$8.9	$2.3	$2.5	$2.1	$3.3	$10.2	$2.7	$3.3	$3.5	$4.1	$13.6	$4.3	$3.9	$3.4	$5.3	$16.9	$4.8	$4.5	$3.9	$5.8	$19.0	$5.5	$5.4	$6.0	$7.3	$24.2	$7.4	$6.8	$14.2