microsoft revenue by segment

The increase in our effective tax rate for fiscal year 2020 compared to fiscal year 2019 was primarily due to a $2.6 billion net income tax benefit in the fourth quarter of fiscal year 2019 related to intangible property transfers. These metrics provide strategic product insights which allow us to assess the performance across our commercial and consumer businesses. Time: 8:30 a.m. Pacific Time To expand usage and deepen engagement, we continue to invest in content, community, and cloud services as we pursue the expansive opportunity in the gaming industry. Our CSR Reports Hub provides detailed information on law enforcement access to data, our environmental data, our political activities, our workforce demographics, and our human rights work. Microsoft annual revenue for 2021 was $168.088B, a 17.53% increase from 2020. Use Ask Statista Research Service, On April 25, 2014, Microsoft completed the transaction to acquire substantially all of Nokia Corporations Devices and Services Business (NDS). The effort surpassed its initial goals and has been expanded with a new emphasis on connecting learners with jobs that help put their new training to use and connecting employers with skilled job seekers they might not find in traditional networks. Based on our assessment of key technology trends, we maintain our long-term commitment to research and development across a wide spectrum of technologies, tools, and platforms spanning digital work and life experiences, cloud computing, AI, devices, and operating systems. Tested managements identification and treatment of contract terms. We also compete with other providers of entertainment services such as video streaming platforms. Segment by Type - Asset Tracking and Inventory Management Solutions Market Commercial remaining performance obligation, Commercial portion of revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, Revenue from our commercial cloud business, which includes Azure, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, Gross margin percentage for our commercial cloud business, Productivity and Business Processes and Intelligent Cloud. Statista. to incorporate the statistic into your presentation at any time. This included a commitment to invest $1 billion over four years in new technologies and innovative climate solutions. It also provides support, tools, training, and other licensing benefits to help customers deploy and use software efficiently. These systems are augmented by written policies, an organizational structure providing division of responsibilities, careful selection and training of qualified personnel, and a program of internal audits. Determination of whether products and services are considered distinct performance obligations that should be accounted for separately versus together, such as software licenses and related services that are sold with cloud-based services. We are accelerating progress toward a more sustainable future by reducing our environmental footprint, advancing research, helping our customers build sustainable solutions, and advocating for policies that benefit the environment. Once an investment is determined to be impaired, an impairment charge is recorded in other income (expense), net. And we have made a commitment to match 100 percent of our electricity consumption with zero carbon energy purchases 100 percent of the time by 2030. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States of America. In fiscal year 2021, we closed our Microsoft Store physical locations and opened our Microsoft Experience Centers. We hire a mix of university and industry talent worldwide. Certain acquired net operating loss carryforwards are subject to an annual limitation but are expected to be realized with the exception of those which have a valuation allowance. The company's Xbox Game Pass gaming subscription revenue during the year was . We believe our server products provide customers with advantages in performance, total costs of ownership, and productivity by delivering superior applications, development tools, compatibility with a broad base of hardware and software applications, security, and manageability. For all the disruption and suffering that the pandemic has wrought on our lives and our communities, it has also been the catalyst for an unprecedented digital transformation that is driving massive technological and societal shifts that are creating important new opportunities for our customers and for Microsoft. We tested the mathematical accuracy of managements calculations of revenue and the associated timing of revenue recognized in the financial statements. Our platforms and tools help drive small business productivity, large business competitiveness, and public-sector efficiency. Our ambition for Windows 10 monetization opportunities includes gaming, services, subscriptions, and search advertising. As of June 30, 2021 and 2020, other receivables due from suppliers were $965 million and $442 million, respectively, and are included in accounts receivable, net in our consolidated balance sheets. Our Productivity and Business Processes segment consists of products and services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. In addition to LinkedIns free services, LinkedIn offers monetized solutions: Talent Solutions, Marketing Solutions, Premium Subscriptions, Sales Solutions, and Learning Solutions. Excluding this impact, gross margin percentage decreased slightly driven by gross margin percentage reduction in More Personal Computing. Certain cloud services, primarily Office 365, depend on a significant level of integration, interdependency, and interrelation between the desktop applications and cloud services, and are accounted for together as one performance obligation. The fair value of stock awards vested was $13.4 billion, $10.1 billion, and $8.7 billion, for fiscal years 2021, 2020, and 2019, respectively. We compete for talented individuals globally by offering an exceptional working environment, broad customer reach, scale in resources, the ability to grow ones career across many different products and businesses, and competitive compensation and benefits. In fiscal year 2021 and 2020, our foreign regional operating centers in Ireland and Puerto Rico, which are taxed at rates lower than the U.S. rate, generated 82% and 86% of our foreign income before tax. $ 35,058. 4 min read. It transforms how people connect holographically with others in a natural way. Our devices are primarily manufactured by third-party contract manufacturers, some of which contain certain components for which there are very few qualified suppliers. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. By bringing the operating system to the cloud, were enabling organizations to stream the full Windows experience to their employees personal or corporate device with just a few clicks. We also design and sell devices, including PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. Excluding this impact, gross margin percentage decreased slightly driven by a sales mix shift to cloud offerings, on a low prior year comparable impacted by increased usage. Outcomes: The segment generated revenues of $66 million (14.1% of total revenues), up 4% on a year-over-year basis due to higher software license and product sales partly offset by EMEA prepay . We believe these non-GAAP measures aid investors by providing additional insight into our operational performance and help clarify trends affecting our business. In the next three years, well create more data than we did in the past 10. Founder and Chairman, Trilogy This change in accounting estimate was effective beginning fiscal year 2021. Founder, Chief Executive Officer and We strive to obtain information as early as possible about changing usage patterns and hardware advances that may affect software and hardware design. On-the-job stretch and advancement opportunities. Cisco Systems is using its position in enterprise communications equipment to grow its unified communications business. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our consolidated financial statements would be prevented or detected. We are a leader among technology companies in pursuing patents and currently have a portfolio of over 65,000 U.S. and international patents issued and over 21,000 pending worldwide. While it may be necessary in the future to seek or renew licenses relating to various aspects of our products, services, and business methods, we believe, based upon past experience and industry practice, such licenses generally can be obtained on commercially reasonable terms. Organizations purchase perpetual licenses and SA is optional. In-the-classroom learning, learning pods, our early-in-career Aspire program, and manager excellence communities. The extent to which the COVID-19 pandemic impacts our business going forward will depend on numerous evolving factors we cannot reliably predict. Celanese Corporation CE reported earnings from continuing operations of $7.03 per share in the fourth quarter of 2022, up 46% from . Their revenue came in at 25,007 Million USD, which missed the expected amount by around 5% but represented a 13% increase YoY. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Seattle, Washington The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Build the intelligent cloud and intelligent edge platform. President, Fable Group Inc. Teri L. List 1,3 Segment. Our server products are designed to make IT professionals, developers, and their systems more productive and efficient. Revenue and expenses are translated at average rates of exchange prevailing during the year. Billionaires like Microsoft Corp. co-founder Bill Gates likely saw an opportunity through . Supplied by Refinitiv. This amounted to an increase of 19.3% from the year-ago quarter . In the same way that Office revolutionized productivity for knowledge workers, Power Platformwhich has over 16 million monthly usersis transforming application development so that anyone can automate workflows, create apps, build virtual agents, and analyze data. The Surface family includes Surface Book 3, Surface Laptop Go, Surface Go 2, Surface Pro 7, Surface Laptop 4, Surface Pro X, Surface Studio 2, and Surface Duo. The 2021 Annual Shareholders Meeting will be held as a virtual-only meeting. Dynamics competes with cloud-based and on-premises business solution providers such as Oracle, Salesforce.com, and SAP. We believe learning can be more than formal instruction, and our learning philosophy focuses on providing the right learning, at the right time, in the right way. Office Commercial products and cloud services revenue growth, Revenue from Office Commercial products and cloud services (Office 365 subscriptions, the Office 365 portion of Microsoft 365 Commercial subscriptions, and Office licensed on-premises), comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, Office Consumer products and cloud services revenue growth, Revenue from Office Consumer products and cloud services, including Microsoft 365 Consumer subscriptions and Office licensed on-premises, The number of Office 365 Commercial seats at end of period where seats are paid users covered by an Office 365 Commercial subscription, The number of Microsoft 365 Consumer (formerly Office 365 Consumer) subscribers at end of period, Dynamics products and cloud services With Azure Stack, organizations can extend Azure into their own datacenters to create a consistent stack across the public cloud and the intelligent edge. Antitrust, Unfair Competition, and Overcharge Class Actions. Announcements of investor conferences, speeches, and events at which our executives talk about our product, service, and competitive strategies. The bottom . Our revenue fluctuates quarterly and is generally higher in the second and fourth quarters of our fiscal year. We perform a qualitative assessment on a periodic basis. Chairman and Chief Executive Officer, In addition to these channels, we use social media to communicate to the public. On September 20, 2016, our Board of Directors approved a share repurchase program authorizing up to $40.0 billion in share repurchases. To foster their and our success, we seek to create an environment where people can do their best work a place where they can proudly be their authentic selves, guided by our values, and where they know their needs can be met. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. For hardware warranties, we estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). Devices, including Surface and PC accessories. Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We adopted the standard effective July 1, 2020. Management is responsible for the preparation of the consolidated financial statements and related information that are presented in this report. In August 2018, the trial court issued an order striking portions of the plaintiffs expert reports. Our approach to hybrid work starts with Teamsthe only all-in-one solution that supports meetings, calls, chat, collaboration, and business process automation in day-to-day workflow. Managers holding conversations about employees career and development plans, coaching on career opportunities, and programs like mentoring and sponsorship. In fiscal years 2021, 2020, and 2019, there were no individually significant other reconciling items. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract period. Microsoft 365 Consumer subscribers increased 22% to 51.9 million. Our success is highly dependent on our ability to attract and retain qualified employees. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Refer to Note 8 Business Combinations of the Notes to Financial Statements for further discussion. We tested the reasonableness of managements judgments regarding the future resolution of the uncertain tax positions, including an evaluation of the technical merits of the uncertain tax positions. $ 17,897. Gross unrecognized tax benefits related to uncertain tax positions as of June 30, 2021, 2020, and 2019, were $14.6 billion, $13.8 billion, and $13.1 billion, respectively, which were primarily included in long-term income taxes in our consolidated balance sheets. We evaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation approach. The financial results of ZeniMax have been included in our consolidated financial statements since the date of the acquisition. Shares repurchased during the third quarter of fiscal year 2020 were under the share repurchase programs approved on both September 20, 2016 and September 18, 2019. While we employ much of our internally-developed intellectual property exclusively in our products and services, we also engage in outbound licensing of specific patented technologies that are incorporated into licensees products. We strive to include others by holding ourselves accountable for diversity, driving global systemic change in our workplace and workforce, and creating an inclusive work environment. We believe our continuing research and product development are not materially dependent on any single license or other agreement with a third party relating to the development of our products. Revenue from Starlink is also expected to grow substantially, from $1.9 billion last year to $5.4 billion in 2023. Microsoft posted the first quarter of its 2022 financial results today, reporting revenue of $45.3 billion and a net income of $20.5 billion (GAAP). We record a receivable related to revenue recognized for multi-year on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses. Open agreements are designed for small and medium organizations that want to license cloud services and on-premises software over a one- to three-year period. Reality Labs' total loss for 2022 came in . Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Select Plus agreements are designed for government and academic organizations to acquire on-premises licenses at any affiliate or department level, while realizing advantages as one organization. Access to this and all other statistics on 80,000 topics from, Show sources information Our ecosystem of customers and partners has stepped up to help people and organizations in every country use technology to be resilient and transform during the most trying of circumstances. We are accelerating adoption of AI innovations from research to products. We compete by providing powerful, flexible, secure, integrated industry-specific, and easy-to-use productivity and collaboration tools and services that create comprehensive solutions and work well with technologies our customers already have both on-premises or in the cloud. To use individual functions (e.g., mark statistics as favourites, set ET. And we continue to create successful new franchises. We selected a sample of customer agreements and performed the following procedures: Obtained and read contract source documents for each selection, including master agreements, and other documents that were part of the agreement. For access to additional financial information, visit the Investor Relations website online at: www.microsoft.com/investor. Financial metrics are calculated based on GAAP results and growth comparisons relate to the corresponding period of last fiscal year. Last year, we mobilized resources to respond to the Beirut explosion, hurricanes in Central America, wildfires in the United States, and more. The acquisition will build on our industry-specific cloud offerings. Revenue from distinct on-premises licenses is recognized upfront at the point in time when the software is made available to the customer. This segment primarily comprises: Office Commercial is designed to increase personal, team, and organizational productivity through a range of products and services. Enterprise Services, including Premier Support Services and Microsoft Consulting Services. Current Price. There were 63 patent infringement cases pending against Microsoft as of June 30, 2021, none of which are material individually or in aggregate. Operating income increased $5.6 billion or 30%. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. A Reporting Pricing Level is the established level for Budget/Forecast to Actual revenue comparisons possible. We also invested $20 million in key non-profit partnerships through Microsoft Philanthropies to help people from underserved communities that are often excluded by the digital economy. We implemented a global Paid Pandemic School and Childcare Closure Leave to support working parents, added wellbeing days for those who needed to take time off for mental health and wellness, implemented on-demand COVID-19 testing and vaccinations on our Redmond, Washington campus, and extended full medical plan coverage for coronavirus testing, treatment, and telehealth services. If market, industry, and/or investee conditions deteriorate, we may incur future impairments. We provide for the estimated costs of fulfilling our obligations under hardware and software warranties at the time the related revenue is recognized. In March 2020, the World Health Organization declared the outbreak of COVID-19 to be a pandemic. You're reading a free article with opinions that may differ from The Motley . For a discussion of the year ended June 30, 2020 compared to the year ended June 30, 2019, please refer to, Managements Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended June 30, 2020. Our effective tax rate for fiscal years 2021 and 2020 was 14% and 17%, respectively. Intelligent Cloud. Microsoft's Intelligent Cloud segment, which includes the Azure public cloud for application hosting, SQL Server, Windows Server and enterprise services generated $20.91 billion in revenue. In particular, among the responsibilities of the Boards Regulatory and Public Policy Committee is to review and provide guidance to the Board and management about the Companys policies and programs that relate to CSR. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. In a time of great disruption and uncertainty, customers are looking to us to accelerate their own digital transformations as software and cloud computing play a huge role across every industry and around the world. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. In December 2019, the FASB issued a new standard to simplify the accounting for income taxes. Refer to Note 12 Income Taxes of the Notes to Financial Statements for further discussion. The following table outlines the expected future recognition of unearned revenue as of June 30, 2021: If our customers choose to license cloud-based versions of our products and services rather than licensing transaction-based products and services, the associated revenue will shift from being recognized at the time of the transaction to being recognized over the subscription period or upon consumption, as applicable. This segment primarily comprises: The Windows operating system is designed to deliver a more personal computing experience for users by enabling consistency of experience, applications, and information across their devices. Our effective tax rate was lower than the U.S. federal statutory rate, primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland and Puerto Rico, tax benefits relating to stock-based compensation, and tax benefits from the India Supreme Court decision on withholding taxes. We believe that our audits provide a reasonable basis for our opinion. We record an allowance to cover expected losses based on troubled accounts, historical experience, and other currently available evidence. Differences in device market demand between developed markets and growth markets. Customer mix between consumer, small and medium businesses, and large enterprises. As the world continues to respond to COVID-19, we are working to do our part by ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing technology and resources to our customers to help them do their best work while remote. Our products are generally sold with a right of return, we may provide other credits or incentives, and in certain instances we estimate customer usage of our products and services, which are accounted for as variable consideration when determining the amount of revenue to recognize. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of ZeniMax. Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment. Derivative instruments are recognized as either assets or liabilities and measured at fair value. By segment, Microsoft earnings figures generally showed healthy growth in Q2. All other shares repurchased were under the share repurchase program approved on September 20, 2016. If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. Our international operations provide a significant portion of our total revenue and expenses. We have committed $9.5 billion for the construction of new buildings, building improvements, and leasehold improvements as of June 30, 2021. More Personal Computing revenue increased driven by Gaming. Finally, we believe transparency is the foundation of trust, so we continue to offer clear information on how we run our business and work with customers and partners. We are building a Planetary Computer to help manage and protect Earths natural systems. The above table excludes shares repurchased to settle employee tax withholding related to the vesting of stock awards of $4.4 billion, $3.3 billion, and $2.7 billion for fiscal years 2021, 2020, and 2019, respectively. Our More Personal Computing segment consists of products and services that put customers at the center of the experience with our technology. The segment amounts included in MD&A are presented on a basis consistent with our internal management reporting. Our search business competes with Google and a wide array of websites, social platforms like Facebook, and portals that provide content and online offerings to end users. If we have plans to sell the security or it is more likely than not that we will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in other income (expense), net and a new cost basis in the investment is established. The mix of income before income taxes between the U.S. and foreign countries impacted our effective tax rate as a result of the geographic distribution of, and customer demand for, our products and services. Our Dynamics business solutions are also licensed to enterprises through a global network of channel partners providing vertical solutions and specialized services. We have several partnerships with other companies, including Verizon Media Group, through which we provide and monetize search queries. At Microsoft, we push the boundaries of what is possible through a broad range of research and development activities that seek to identify and address the changing demands of customers and users, industry trends, and competitive forces. And in the first year of our commitment to address inequity and racial injustice, we are well on our way to doubling the number of Black and African American, Hispanic, and Latinx employees in leadership positions at Microsoft in the United States by 2025. 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. Total. With Xbox Game Pass, we are transforming how people discover, connect, and engage with games. Finally, our Occupational Health and Safety program helps ensure employees can stay safe while they are working. To sign up for this free service, visit the Annual Report site on the Investor Relations website at: http://www.microsoft.com/investor/AnnualReports/default.aspx.

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