Microsoft

Name: Jannah Victoria D. Amora

INCOME STATEMENTS

(In millions, except per share amounts)

Year Ended June 30, 2022 2021 2020

Revenue:

Product $72,732 $71,074 $68,041

Service and other 125,538 97,014 74,974

Total revenue 198,270 168,088 143,015

Cost of revenue:

Product 19,064 18,219 16,017

Service and other 43,586 34,013 30,061

Total cost of revenue 62,650 52,232 46,078

Gross margin 135,620 115,856 96,937

Research and development 24,512 20,716 19,269

Sales and marketing 21,825 20,117 19,598

General and administrative 5,900 5,107 5,111

Operating income 83,383 69,916 52,959

Other income, net 333 1,186 77

Income before income taxes 83,716 71,102 53,036

Provision for income taxes 10,978 9,831 8,755

Net income $72,738 $61,271 $44,281

COMPREHENSIVE INCOME STATEMENTS

(In millions)

Year Ended June 30, 2022 2021 2020

Net income $72,738 $61,271 $44,281

Other comprehensive income

(loss), net of tax:
Net change related to derivatives 6 19 (38)
Net change related to
investments (5,360) (2,266) 3,990
Translation adjustments and
other (1,146) 873 (426)

Other comprehensive income

(loss) (6,500) (1,374) 3,526

Comprehensive income $66,238 $59,897 $47,807

BALANCE SHEETS

(In millions)

June 30, 2022 2021

Assets
Current assets:
Cash and cash equivalents $13,931 $14,224
Short-term investments 90,826 116,110

Total cash, cash equivalents, and short-term investments 104,757 130,334

Accounts receivable, net of allowance for doubtful accounts of $633 and $751 44,261 38,043
Inventories 3,742 2,636
Other current assets 16,924 13,393

Total current assets 169,684 184,406

Property and equipment, net of accumulated depreciation of $59,660 and $51,351 74,398 59,715
Operating lease right-of-use assets 13,148 11,088
Equity investments 6,891 5,984
Goodwill 67,524 49,711
Intangible assets, net 11,298 7,800
Other long-term assets 21,897 15,075

Total assets $364,840 $333,779

Liabilities and stockholders’ equity

Current liabilities:
Accounts payable $19,000 $15,163
Current portion of long-term debt 2,749 8,072
Accrued compensation 10,661 10,057
Short-term income taxes 4,067 2,174
Short-term unearned revenue 45,538 41,525
Other current liabilities 13,067 11,666

Total current liabilities 95,082 88,657

Long-term debt 47,032 50,074
Long-term income taxes 26,069 27,190
Long-term unearned revenue 2,870 2,616
Deferred income taxes 230 198
Operating lease liabilities 11,489 9,629
Other long-term liabilities 15,526 13,427

Total liabilities 198,298 191,791

Commitments and contingencies

Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000;
outstanding 7,464 and 7,519 86,939 83,111
Retained earnings 84,281 57,055
Accumulated other comprehensive income (loss) (4,678) 1,822

Total stockholders’ equity 166,542 141,988

Total liabilities and stockholders’ equity $364,840 $333,779

Refer to accompanying notes.
CASH FLOWS STATEMENTS

(In millions)

Year Ended June 30, 2022 2021 2020

Operations
Net income $72,738 $61,271 $44,281
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other 14,460 11,686 12,796
Stock-based compensation expense 7,502 6,118 5,289
Net recognized gains on investments and derivatives (409) (1,249) (219)
Deferred income taxes (5,702) (150) 11
Changes in operating assets and liabilities:
Accounts receivable (6,834) (6,481) (2,577)
Inventories (1,123) (737) 168
Other current assets (709) (932) (2,330)
Other long-term assets (2,805) (3,459) (1,037)
Accounts payable 2,943 2,798 3,018
Unearned revenue 5,109 4,633 2,212
 Income taxes 696 (2,309) (3,631)
Other current liabilities 2,344 4,149 1,346
Other long-term liabilities 825 1,402 1,348

Net cash from operations 89,035 76,740 60,675

Financing
Cash premium on debt exchange 0 (1,754) (3,417)
Repayments of debt (9,023) (3,750) (5,518)
Common stock issued 1,841 1,693 1,343
Common stock repurchased (32,696) (27,385) (22,968)
Common stock cash dividends paid (18,135) (16,521) (15,137)
Other, net (863) (769) (334)

Net cash used in financing (58,876) (48,486) (46,031)

Investing
Additions to property and equipment (23,886) (20,622) (15,441)
Acquisition of companies, net of cash acquired, and purchases of intangible
and other assets (22,038) (8,909) (2,521)
Purchases of investments (26,456) (62,924) (77,190)
Maturities of investments 16,451 51,792 66,449
Sales of investments 28,443 14,008 17,721
Other, net (2,825) (922) (1,241)
 Net cash used in investing (30,311) (27,577) (12,223)

Effect of foreign exchange rates on cash and cash equivalents (141) (29) (201)

Net change in cash and cash equivalents (293) 648 2,220

Cash and cash equivalents, beginning of period 14,224 13,576 11,356

Cash and cash equivalents, end of period $13,931 $14,224 $13,576

Refer to accompanying notes.
STOCKHOLDERS’ EQUITY STATEMENTS

(In millions, except per share amounts)

Year Ended June 30, 2022 2021 2020

Common stock and paid-in capital

Balance, beginning of period $83,111 $80,552 $78,520
Common stock issued 1,841 1,963 1,343
Common stock repurchased (5,688) (5,539) (4,599)
Stock-based compensation expense 7,502 6,118 5,289
Other, net 173 17 (1)

Balance, end of period 86,939 83,111 80,552

Retained earnings
Balance, beginning of period 57,055 34,566 24,150
Net income 72,738 61,271 44,281
Common stock cash dividends (18,552) (16,871) (15,483)
Common stock repurchased (26,960) (21,879) (18,382)
Cumulative effect of accounting changes 0 (32) 0
 Balance, end of period 84,281 57,055 34,566

Accumulated other comprehensive income (loss)

Balance, beginning of period 1,822 3,186 (340)
Other comprehensive income (loss) (6,500) (1,374) 3,526
Cumulative effect of accounting changes 0 10 0

Balance, end of period (4,678) 1,822 3,186

Total stockholders’ equity $166,542 $141,988 $118,304

Cash dividends declared per common share $2.48 $2.24 $2.04

Refer to accompanying notes.