We have an ESPP for all eligible employees. The settlement risk related to these investments is insignificant given that the short-term investments held are primarily highly liquid investment-grade fixed-income securities. Over the last year, we have collaborated with partners and worked within neighborhoods and communities to launch and scale a number of projects and programs including: expanding our existing justice reform work with a five-year, $50 million sustained effort, expanding access to affordable broadband and devices for Black and African American communities and key institutions that support them in major urban centers, expanding access to skills and education to support Black and African American students and adults to succeed in the digital economy, and increasing technology support for nonprofits that provide critical services to Black and African American communities. We encourage investors, the media, and others interested in Microsoft to review the information we post on the social media channels listed on our Investor Relations website. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in earnings. This is why we introduced Microsoft Viva, which brings the information, resources, and support employees need to stay connected to each other and their companys mission directly into the flow of work. Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment. By combining the Internet of Things, AI, and mixed reality, this platform layer enables the creation of rich digital twin simulations of real-world processes, places, and things so organizations can monitor complex systems in real time, interact within them using mixed reality, and run simulations to model, analyze, and predict performance. Our server products are designed to make IT professionals, developers, and their systems more productive and efficient. Our commercial business primarily consists of Server products and cloud services, Office Commercial, Windows Commercial, the commercial portion of LinkedIn, Enterprise Services, and Dynamics. Refer to Note 1 Accounting Policies of the Notes to Financial Statements for further discussion. In addition, we consider specific adverse conditions related to the financial health of, and business outlook for, the investee. We protect our intellectual property investments in a variety of ways. Refer to the Non-GAAP Financial Measures section below for a reconciliation of our financial results reported in accordance with GAAP to non-GAAP financial results. In January 2021, we announced that in fiscal year 2020 we reduced Microsofts carbon emissions by 586,683 metric tons. Chairman and Chief Executive Officer, Amy E. Hood Property and equipment is stated at cost less accumulated depreciation, and depreciated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. In July 2020, we completed an assessment of the useful lives of our server and network equipment and determined we should increase the estimated useful life of server equipment from three years to four years and increase the estimated useful life of network equipment from two years to four years. We have completed our assessment and concluded that adoption of the new standard will not have a material impact on our consolidated financial statements. The company's gross margin guidance will remain at above 20 percent . The acquisition is expected to empower developers to achieve more at every stage of the development lifecycle, accelerate enterprise use of GitHub, and bring Microsofts developer tools and services to new audiences. We evaluated managements significant accounting policies related to these customer agreements for reasonableness. The information found on these websites is not part of, or incorporated by reference into, this or any other report we file with, or furnish to, the SEC. We think of diversity and inclusion as core to our business model, informing our actions to impact economies and people around the world. Enterprise Services revenue increased $534 million or 8% driven by growth in Premier Support Services. Today's Change. Microsoft has introduced a Hybrid Workplace Flexibility Guide to better support managers and employees as they adapt to new ways of working that shift paradigms, embrace flexibility, promote inclusion, and drive innovation. Net realizable value is the estimated selling price less estimated costs of completion, disposal, and transportation. Organizations also license our products and services indirectly, primarily through licensing solution partners (LSP), distributors, value-added resellers (VAR), and retailers. Stock awards generally vest over a service period of four years or five years. , Oct 10, 2022. During fiscal year 2021, our Daily Pulse surveys gave us invaluable insights into ways we could support employees through the COVID-19 pandemic and addressing racial injustice. In March 2020, the World Health Organization declared the outbreak of COVID-19 to be a pandemic. LVMH is a luxury group owned by the Arnault family, which generated over 79 billion in revenue ($83 billion) in revenue in 2022, with a luxury empire that spans many segments. In cases where we allocate revenue to software updates, primarily because the updates are provided at no additional charge, revenue is recognized as the updates are provided, which is generally ratably over the estimated life of the related device or license. Intelligent Cloud revenue increased driven by Azure. Adjusted net income and adjusted diluted earnings per share (EPS) are non-GAAP financial measures which exclude tax benefits related to an India Supreme Court decision on withholding taxes in fiscal year 2021. 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). STATEMENT OF MANAGEMENTS RESPONSIBILITY FOR FINANCIAL STATEMENTS. Judgment is required to determine the stand-alone selling price (SSP) for each distinct performance obligation. 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. PepsiCo, Charles W. Scharf 2,3 Azures competitive advantage includes enabling a hybrid cloud, allowing deployment of existing datacenters with our public cloud into a single, cohesive infrastructure, and the ability to run at a scale that meets the needs of businesses of all sizes and complexities. Revenue, classified by the major geographic areas in which our customers were located, was as follows: Revenue from external customers, classified by significant product and service offerings, was as follows: Our commercial cloud revenue, which includes Azure, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $69.1 billion, $51.7 billion and $38.1 billion in fiscal years 2021, 2020, and 2019, respectively. In fiscal year 2021, our U.S. income before income taxes was $35.0 billion and our foreign income before income taxes was $36.1 billion. A Reporting Pricing Level is the established level for Budget/Forecast to Actual revenue comparisons possible. In addition to computing device market volume, Windows OEM revenue is impacted by: Windows Commercial revenue, which includes volume licensing of the Windows operating system and Windows cloud services such as Microsoft Defender Advanced Threat Protection, is affected mainly by the demand from commercial customers for volume licensing and Software Assurance (SA), as well as advanced security offerings. Microsoft's revenue 2008-2023, by fiscal quarter. Analysts had expected a 41.4% growth in Azure, according to consensus data from . Microsoft forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion for its fiscal fourth quarter, driven by strong growth in its Azure platform. Microsoft's revenue rose 2% to $52.7 billion in the three months ended Dec. 31, compared with the average analyst estimate of $52.94 billion, according to Refinitiv IBES. As of June 30, 2021, 2020, and 2019, we had accrued interest expense related to uncertain tax positions of $4.3 billion, $4.0 billion, and $3.4 billion, respectively, net of income tax benefits. This year, we made progress in our work to address racial injustice and inequity. 12,820. It has helped us become more empathetic toward our colleagues and enabled us to work together as a teamas One Microsoft. Excluding this impact, gross margin percentage decreased slightly driven by gross margin percentage reduction in More Personal Computing. Fair value is calculated based on publicly available market information or other estimates determined by management. Available: https://www.statista.com/statistics/273482/segment-revenue-of-microsoft/, Microsoft's revenue from 2012 to 2022 financial years, by segment, Available to download in PNG, PDF, XLS format, Global IT spending forecast 2012-2023, by segment, Software market revenue worldwide 2016-2027, by segment, Global public IT cloud services revenue 2016-2021, by segment, Most valuable technology brands worldwide in 2021, Apple, Google, and Microsoft: revenue comparison 2008-2022, Microsoft's revenue 2008-2023, by fiscal quarter, Microsoft's net income 2008-2023, by fiscal quarter, Microsoft's expenditure on research and development 2002-2022, Microsoft's yearly sales and marketing spending 2000-2022, Revenue of Microsoft broken down by segment 2012-2022, Microsoft's productivity and business processes revenue worldwide FY 2015-2023, Microsoft's productivity and business processes income worldwide FY 2015-2023, Microsoft's intelligent cloud revenue worldwide 2015-2023, by quarter, Microsoft's intelligent cloud operating income worldwide 2015-2023, by quarter, Microsoft's 'More Personal Computing' segment revenue worldwide FY 2015-2023, Microsoft's 'More Personal Computing' segment operating income worldwide FY 2015-2023, External revenue of Microsoft broken down by major products and services 2016-2022, Top pure-play software and programming companies globally 2017-2022, by sales, Revenue and total expenses of major software companies 2020, Revenue per employee of major software companies worldwide 2020, Total assets and liabilities of major software companies 2020, Number of employees at major software companies 2020, Tablet OS market share worldwide 2016-2022, by quarter, Office productivity software market share worldwide 2022, Global top-10 cloud vendors by total revenue 2022, Global IaaS and PaaS hyperscaler revenue 2018-2021, by vendor, Cloud infrastructure services market share quarterly worldwide 2017-2022, by vendor, Public cloud platform usage and adoption worldwide 2022, by service provider, Private cloud platform service adoption worldwide 2022, by service provider, PC revenue share by vendor worldwide 2018 to 2021, PC vendor shipments worldwide from 2006-2022, Personal computer installed base share worldwide 2018 to 2021, by vendor, Microsoft's commercial revenue distribution by segment 2015-2018, Number of Windows 7 licenses sold worldwide from 2009-2012, Microsoft Windows 8: number of licenses sold 2012-2014, Brand triad: attitude towards Microsoft in Germany 2013-2016, Microsoft's automotive infotainment OS sales worldwide 2011-2020, Number of Microsoft employees 2018-2022, by location, Number of Microsoft employees 2018-2022, by business unit, Number of Microsoft patents by filing year and legal status worldwide 1999-2019, Microsoft's greenhouse gas emissions by scope 2016, Microsoft Exchange Server mailbox deployment share worldwide 2018-2022, Price of selected acquisitions by Microsoft 2022, Windows Phone smartphone users in the United States 2010-2021, Microsoft unique users in Italy 2016-2018, Canada frequency of use of Microsoft products and services 2018, by age group, Open source project growth rates worldwide: leading countries in 2019, Office software market revenue in Europe 2016-2021, Office software market revenue in Spain 2016-2021, Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. dollars), Find your information in our database containing over 20,000 reports, total figure reaching over 198 billion dollars, invested billions into research and development. Windows 10 serves the enterprise as the most secure and productive operating system. The outcomes of legal proceedings and claims brought against us are subject to significant uncertainty. Finally, our Occupational Health and Safety program helps ensure employees can stay safe while they are working. Microsoft annual revenue for 2021 was $168.088B, a 17.53% increase from 2020. The proceeds of these issuances were or will be used for general corporate purposes, which may include, among other things, funding for working capital, capital expenditures, repurchases of capital stock, acquisitions, and repayment of existing debt. We have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved through coding and testing. Three billion people around the world play games, which makes gaming the largest category in the entertainment industry. Microsoft just announced its results for FY22 Q4, which ended on June 30, 2022. We made substantial modifications to employee travel policies and implemented office closures so non-essential employees could work remotely. services revenue growth, Revenue from Windows Commercial products and cloud services, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings, Revenue from Surface devices and accessories, Revenue from Xbox content and services, comprising digital transactions, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services, and advertising, Search advertising revenue, excluding TAC, growth, Revenue from search advertising excluding traffic acquisition costs (TAC) paid to Bing Ads network publishers. China State Administration for Market Regulation Investigation. 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