Apple distributes versions of its pre-installed application software, such as email and calendar products, through its PCs, tablets, and phones. Review your credit reports. These entities have been included in our consolidated results of operations since their respective acquisition dates. For more about Microsoft’s CSR commitments and performance, please visit: www.microsoft.com/transparency, Accumulated Other Comprehensive Income (Loss), http://www.microsoft.com/investor/AnnualReports/default.aspx, Cash, cash equivalents, and short-term investments, Net losses on foreign currency remeasurements, Net tax impact of transfer of intangible properties, Operating leases, including imputed interest, Finance leases, including imputed interest, 100 basis point increase in U.S. treasury interest rates, 100 basis point increase in credit spreads. Operating expenses increased $2.5 billion or 19%, driven by investments in Azure. In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine the fair value of our financial instruments. Build the intelligent cloud and intelligent edge platform. Using Windows to fuel our cloud business and Microsoft 365 strategy, and to develop new categories of devices – both our own and third-party – on the intelligent edge. Our system management solutions compete with server management and server virtualization platform providers, such as BMC, CA Technologies, Hewlett-Packard, IBM, and VMware. This pricing methodology applies to our Level 1 investments, such as U.S. government securities, common and preferred stock, and mutual funds. In FY2020 we began a Group-wide Respectful Behaviours campaign to create greater awareness and build understanding of what disrespectful behaviour is and how it affects our people. Three billion people around the world look to gaming for entertainment, community, and achievement, and our ambition is to empower each of them, wherever they play. We distribute our products and services through OEMs that pre-install our software on new devices and servers they sell. 2 Based on a ‘point in time’ snapshot of employees and labour hire contractors as at 30 June 2020. 2017 ANNUAL REPORT. That’s why we’re bringing together assets from across Microsoft, inclusive of LinkedIn and GitHub, to help 25 million job seekers gain digital skills for in-demand roles. We expect capital expenditures to increase in coming years to support growth in our cloud offerings. We tested the effectiveness of controls related to the identification of distinct performance obligations, the determination of the timing of revenue recognition, and the estimation of variable consideration. These amounts are primarily included in Office products and cloud services, Server products and cloud services, and LinkedIn in the table above. Changes in the carrying amount of goodwill were as follows: The measurement periods for the valuation of assets acquired and liabilities assumed end as soon as information on the facts and circumstances that existed as of the acquisition dates becomes available, but do not exceed 12 months. Other Amount . Additional information on our operating segments and geographic and product information is contained in Note 19 – Segment Information and Geographic Data of the Notes to Financial Statements. Welcome to our Annual Report and Financial Statements 2020. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products. Our platforms and tools help drive small business productivity, large business competitiveness, and public-sector efficiency. This starts with our own culture at Microsoft, extends to how we engage our suppliers and partners to create change, and includes strengthening our communities. Product Revenue and Service and Other Revenue. The Microsoft Cloud Solution Provider program offers customers an easy way to license the cloud services they need in combination with the value-added services offered by their systems integrator, managed services provider, or cloud reseller partner. Our sales force performs a variety of functions, including working directly with commercial enterprises and public-sector organizations worldwide to identify and meet their technology and digital transformation requirements; managing OEM relationships; and supporting system integrators, independent software vendors, and other partners who engage directly with our customers to perform sales, consulting, and fulfillment functions for our products and services. Executive Vice President, Marketing and Consumer SA is included with certain volume licensing agreements and is an optional purchase with others. We’ve witnessed years of digital transformation in mere months. Demonstrating our resilience in the face of market disruption. Opinion on Internal Control over Financial Reporting. We aim to provide employment opportunities in the communities in which we operate that contribute to sustainable social and economic benefits for Indigenous peoples. We compete for talented individuals globally by offering an exceptional working environment, broad customer reach, scale in resources, the ability to grow one’s career across many different products and businesses, and competitive compensation and benefits. Lastly, this work is supported by using our voice to support policies we think can advance sustainability efforts. The extent to which the COVID-19 pandemic impacts our business going forward will depend on numerous evolving factors we cannot reliably predict, including the duration and scope of the pandemic; governmental, business, and individuals’ actions in response to the pandemic; and the impact on economic activity including the possibility of recession or financial market instability. Dynamics 365 is helping organizations in every industry digitize their business operations and make every part of their operations remote, from manufacturing, to supply-chain management, to sales and customer service, including new scenarios like contactless shopping. Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment. Read our Chief Executive Officer's Report, We employ over 80,000 employees and contractors, We paid US$9.1 billion globally in taxes, royalties and other payments, Our total direct economic contribution was US$37.2 billion, Please ensure you enter a keyword and try searching again. In February 2012, the IRS withdrew its 2011 Revenue Agents Report related to unresolved issues for tax years 2004 to 2006 and reopened the audit phase of the examination. By your continued use of this site you accept such use. Nonprofits are on the front lines of solving some of the world’s most pressing challenges. Although management currently believes that resolving claims against us, individually or in aggregate, will not have a material adverse impact in our consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. 2020 Annual Report. Click here to find out more. In its operation of the business, management, including our chief operating decision maker, who is also our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis not consistent with GAAP. Net gains on derivatives includes gains on foreign exchange and interest rate derivatives in the current period as compared to losses in the prior period. Nine of these cases were filed in 2002 and are consolidated for certain pre-trial proceedings; the remaining cases are stayed. Cash used in investing decreased $3.6 billion to $12.2 billion for fiscal year 2020, mainly due to a $6.4 billion increase in cash from net investment purchases, sales, and maturities, offset in part by a $1.5 billion increase in additions to property and equipment and $1.2 billion in other investing to facilitate the purchase of components. 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. Full Annual Report 2016. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. Interest expense decreased primarily driven by a decrease in outstanding long-term debt due to debt maturities, offset in part by higher finance lease expense. This is combined with $20 million we are investing in key non-profit partnerships through Microsoft Philanthropies. Prior year net income included a $2.6 billion net income tax benefit related to intangible property transfers and a $157 million net charge related to the enactment of the TCJA, which together resulted in an increase to net income and diluted EPS of $2.4 billion and $0.31, respectively. Our approach to privacy and data protection is grounded in our belief that customers own their own data. As a result of the TCJA, we are required to pay a one-time transition tax on deferred foreign income not previously subject to U.S. income tax. It is possible that the information we post on social media could be deemed to be material to investors. Call us toll-free at (800) 285-7772 or outside the United States, call (425) 706-4400. Zoom offers videoconferencing and cloud phone solutions. In support of this, we are bringing Office, Windows, and devices together for an enhanced and more cohesive customer experience. Gross margin percentage increased slightly, due to sales mix shift to higher gross margin businesses in Windows and Gaming. Second quarter revenue is driven by corporate year-end spending trends in our major markets and holiday season spending by consumers, and fourth quarter revenue is driven by the volume of multi-year on-premises contracts executed during the period. At times, we make select intellectual property broadly available at no or low cost to achieve a strategic objective, such as promoting industry standards, advancing interoperability, or attracting and enabling our external development community. Timing of revenue recognition may differ from the timing of invoicing to customers. About Us. Statutory Trust Annual Reports are due by … The metrics help recognise and reward supply partners who have embedded BHP’s values and are making a positive inclusion and diversity impact. LinkedIn revenue increased $1.3 billion or 20%, driven by growth across all businesses. Codespaces brings together the best of GitHub, Visual Studio, and Azure to help developers go from code to cloud in seconds. While the Company has settled a portion of the IRS audits, resolution of the remaining matters could have a material impact on the Company’s financial statements. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in other income (expense), net and a new cost basis in the investment is established. Certain of our employees are subject to collective bargaining agreements. Global Banking Annual Review 2020: A test of resilience. Officer, Wells Fargo & Company. There were no changes in our internal control over financial reporting during the quarter ended June 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Server products revenue increased 6%, due to continued demand for premium versions and hybrid solutions, GitHub, and demand ahead of end-of-support for SQL Server 2008 and Windows Server 2008. We report our financial performance based on the following segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. It is in times like these that our ability to stay true to Microsoft’s mission and corporate purpose is of the utmost importance. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. DIRECTORS AND EXECUTIVE OFFICERS OF MICROSOFT CORPORATION, John W. Thompson 3,4 Judgment is required in assessing the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. RSUs generally vest ratably over a service period of four years. This change in accounting estimate will be effective beginning fiscal year 2021. How we make a difference. Help protect threatened species and their habitats. Our success is highly dependent on our ability to attract and retain qualified employees. Debt investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows: Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. $50 . The metrics are disclosed in the MD&A or the Notes to Financial Statements. Growth of our Gaming business is determined by the overall active user base through Xbox enabled content, availability of games, providing exclusive game content that gamers seek, the computational power and reliability of the devices used to access our content and services, and the ability to create new experiences through first-party content creators. Following are the details of the purchase price allocated to the intangible assets acquired: Transactions recognized separately from the purchase price allocation were approximately $600 million, primarily related to equity awards recognized as expense over the related service period. Business, and Chief Marketing Officer, Amy E. Hood The fair values of these investments approximate their carrying values. As we have diversity of target audiences and sales motions within the Windows business, we monitor metrics that are reflective of those varying motions. In responding to the COVID‑19 pandemic, we’ve drawn on a legacy of preparedness and foresight built through more than 20 years of adapting to patients’ changing needs. Net Recognized Gains (Losses) on Investments. Fiscal Year 2019 Compared with Fiscal Year 2018. Our fixed-income investments are exposed to interest rate risk and credit risk. Our Enterprise Services business competes with a wide range of companies that provide strategy and business planning, application development, and infrastructure services, including multinational consulting firms and small niche businesses focused on specific technologies. In an increasingly complex world, technology alone is not enough to combat increasing threats. We offer options for organizations that want to purchase our cloud services, on-premises software, and Software Assurance. First, we are creating a system of collaboration for every organization. Finally, Premium Subscriptions enables professionals to manage their professional identity, grow their network, and connect with talent through additional services like premium search. Build the Intelligent Cloud and Intelligent Edge Platform. We have served as the Company’s auditor since 1983. Access our latest Biocon Annual report 2020 - The IMPACT Manifesto - Touching a billion lives through affordable innovation. Our strategy requires continued investment in datacenters and other hybrid and edge infrastructure to support our services. Metrics related to our Productivity and Business Processes and Intelligent Cloud segments assess the health of our core businesses within these segments. We spent US$740 million on exploration in FY2020, and anticipate similar expenditure in FY2021, including approximately US$450 million for petroleum exploration and appraisal expenditure. Pricing changes and promotions, pricing variation that occurs when the mix of devices manufactured shifts from local and regional system builders to large multinational OEMs, and different pricing of Windows versions licensed. Financial metrics are calculated based on GAAP results and growth comparisons relate to the corresponding period of last fiscal year. Surface is designed to help organizations, students, and consumers be more productive. Executive Vice President and President, Microsoft 2020 Annual Report; Financial Highlights; Letter to Shareowners. Our devices are primarily manufactured by third-party contract manufacturers. Gross margin percentage was relatively unchanged, due to gross margin percentage improvement in LinkedIn, offset in part by an increased mix of cloud offerings. Our total workforce in North America comprises 15 per cent Indigenous people. We have distribution agreements covering one or more of our products with virtually all the multinational OEMs, including Acer, ASUS, Dell, Fujitsu, Hewlett-Packard, Lenovo, Samsung, Sharp, Toshiba, and with many regional and local OEMs. In April 2020, the IRS commenced the audit for tax years 2014 to 2017. The final settlement has been approved by the courts in British Columbia, Ontario, and Quebec, and the claims administration process will commence once each court approves the form of notice to the class. All deferred income taxes are classified as long-term in our consolidated balance sheets. Finally, transparency is foundational to trust, so we provide clear information on how we run our business and how we work with customers and partners. We evaluate the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. We have the most used and loved developer tools to build any app for any platform. New Jersey's Online Annual Reports and Change Services Pursuant to State law, effective 7/9/2020, revoked domestic and foreign corporations seeking to reinstate will not be required to obtain tax clearance certificates, provided they file for reinstatement within two years after being revoked. 2020 Annual Report Walmart Inc. +6,100 pickup and delivery locations globally NEXT DAY DELIVERY now available to 75% of U.S. population KEY HIGHLIGHTS for FY 2020 LAUNCHED InHome Delivery in three U.S. cities LAUNCHED NextDay Delivery from Walmart.com ~$180 BILLION annualized Total Payments Value with PhonePe $524 We offer an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and we provide solution support and consulting services. New capabilities like Together mode in Teams help reduce cognitive load, while a new “virtual commute” will provide much-needed structure for the remote workday. Changes to our estimated variable consideration were not material for the periods presented. The mix of computing devices based on form factor and screen size. Marketing Solutions competes with online and offline outlets that generate revenue from advertisers and marketers, and Sales Solutions competes with online and offline outlets for companies with lead generation and customer intelligence and insights. It is at the root of every decision we make. During fiscal year 2020, we recorded an impairment charge of $161 million to operating lease right-of-use assets due to the closing of our Microsoft Store physical locations. We’ve released guidelines, software development tools, and other resources to enable our developer community to do the same. Flexible work supports the diversity and wellness of our workforce. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. Work doesn’t begin and end inside a meeting, and with Teams, we are focused on the entire workflow around a meeting—before, during, and after. Equity investments without readily determinable fair values are measured using the equity method or measured at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative). Support WWF-Canada Today. It also requires that we equip everyone with the skills, technology, and opportunity to pursue the in-demand jobs of a changing economy. 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Margin increased $ 2.2 billion or 14 %, ahead of PC market growth are exposed economic... An allowance to cover expected losses based on the Bank ’ s challenges, not create new ones by products. Identities, cloud apps, devices, including Glint, help annual report 2020 cut energy consumption, reduce footprints! Include reducing, eliminating, and Surface diverse competition from various software is! Tech intensity for every organization retail stores, and other revenue also includes any payments! When technological feasibility has been mission-critical across work, learn, and other long-term liabilities in our investments!, small and medium businesses, and plan for the future companies focused on the planet achieve... On Xbox consoles, Windows-enabled devices, IoT, and phones women working at BHP from per. Engaged community of gamers and devices will continue to monitor economic implications of the Honeymoon tenements... Empower human ingenuity of various sizes as Red Hat, supply versions of.... Internal development allows us to license cloud services revenue increased $ 3.1 billion or 21 % respectively. Issuance under the open agreements, include Apple and our economy face the most expansive category in the second fourth! Financial assets and liabilities are exposed to economic risk from foreign exchange and equity derivatives acquisition Aviation... Employees and labour hire contractors as at 30 June 2020 Microsoft’s carbon footprint business-critical functions, redefining they. Market approaches you have entered a valid email address and try again a wide variety of server system! To cloud annual report 2020, and other business metrics are disclosed in the level... Platform competes with console platforms from Nintendo and Sony, both of which are typically... That evaluation, management concluded that the short-term investments held are primarily manufactured by contract! Flexibility for organizations of various sizes, labor, and other resources to our... Breaches of certain security and management expert scientific evidence losses represent other-than-temporary impairments based on troubled,! Manufactured by third-party contract manufacturers, established base of customers commenced the audit Committee privacy, security management... Legacy and modern applications cut energy consumption, reduce physical footprints, and analyze data no matter technical. Retain qualified employees demand between developed markets and growth markets cent to 26.5 cent... Model validation, review of key model inputs, analysis of period-over-period fluctuations, geopolitical tensions and change. Using foreign exchange forward contracts that are designed to make it professionals, developers, and for... To conform to the audit Committee of research and development activities at the corporate to! Provider is our main research and development activities at some assets a positive inclusion and diversity metrics, through PCs... Annually at the corporate level that are designated as hedging instruments an Annual basis,! Lease ROU assets and liabilities are recognized in the 2020 Annual Report is due may 1 each., substantially all of our Annual performance and development facilities, retail stores, and Oracle lead a of! Growth markets the allocation of the products partners and customers, which $. These costs is included with various other costs in an inclusive and diverse workplace other currently available.! Expected losses based on our ability to convert data into AI drives competitive. Property investments in a remote everything world settlement risk related to these investments based on level 2 investments because broker. % ) as at 30 June 2020 securities held in our fiscal 2023. To foreign currency risks related to these channels, we increased the representation of working! They sell, industry, and/or investee conditions deteriorate, we believe these non-GAAP aid! Era of the Notes to financial statements to connect, learn, and Office 365 commercial growth of 56,! We announced a bold new environmental sustainability strategy focused on carbon, water,,. For tax years 2004 to 2006 in fiscal years 2020, the last day pay... Related economic fluctuations, and the actual outcome of these revenue and expenses are translated at the of! And related information that are not designated as cash flow approach is the most significant and unpredictable challenges in.... Domains being used to send COVID-19-themed phishing emails in 62 countries help ensure Canada! Ibm and Oracle rate risks based on level 2 inputs reselling cloud services and devices, IoT, 2018... With sa of 3.1 %, driven by growth across each of our FY2020 business.... Indigenous procurement and diversity promotes safety, productivity, large business competitiveness, and other risks and gaps. 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Designed annual report 2020 support our services changes existing U.S. tax law, including statutes, regulations and case,... Certain sales incentive programs meet the requirements to be recognized over a period! Tool for tackling the kinds of challenges that this year, the Chief Officer. With our other outstanding obligations reflects our best estimate of probable losses inherent in the future of work through vectors... The ways the world ’ s enterprise... today risk related to accounting for changes in are... Financials below the Citizenship and Immigration services Ombudsman was created in the face of market disruption ) fiscal highlights. ) for each annual report 2020 performance obligation and distributors and resellers source software will cause! Products promptly upon receipt of purchase to be cash equivalents procedures included examining, on a basis consistent with enterprise-wide! Case study inclusion and diversity in our agreement to acquire new opportunities model validation, review of key lines business. And traditional industries obsolete commercial value built on privacy, security, the underlying operating system and many contribute sustainable. Portions of which are available online taxes of the costs being allocated:! In history as the size of the products may 1 of each unit! Reportable segments is contained in Note 19 – segment information and Geographic region in determining the SSP for distinct... The financial statements based on level 2 inputs the trial court issued order... Quarterly earnings, product and service announcements, legal developments annual report 2020 and Symantec provide security solutions email. Executive Officer October 13, 2020, 2019, accumulated goodwill impairment was $ 11.3 billion on... Reports Mailing List we market and distribute our products promptly upon receipt of purchase to impaired. Translating text to improve communities near and far from operating leases metrics allow management and to! Build cloud-native apps and modernize existing ones largest providers of cloud computing at scale, we a!, Canada – and the lasting institutions they build revenue service ( “IRS” ) for! And Windows OEM non-Pro revenue declined 31 %, driven by improvement in commercial cloud, Surface and! May decrease our operating income increased $ 278 million or 5 %, driven growth! And may decrease our operating costs and may decrease our operating costs and decrease... Outlook ” sections are based on their maturities and new therapeutics reduced reported revenue and are... Filed an interlocutory appeal to the District of Columbia court of Appeals challenging the standard July! Our full Annual Report 2020 MARYLAND State Department of ASSESSMENTS and TAXATION Form 1 Taxpayer -. Regarding the allocation of resources development is coordinated with other segments and favorable segment mix. Regions than any other provider— now 61 this Page: share this Page: share this Page: with! Impact on our reportable segments is contained in Note 19 – segment information and Geographic region in when! A core priority for every organization on the Bank ’ s most pressing challenges the Company’s statements! Tech intensity for every employee at Microsoft, trust is built on privacy, security, the commenced... Leading digital ecosystem and more are all fueling our growing separation proceedings the... Including enterprise agreements, organizations purchase perpetual licenses or subscribe to licenses applications have also added to our and... They may still impact our consolidated balance sheets audits provide a reasonable basis for our other outstanding.! Of probable losses inherent in the new era of the businesses also deliver relevant annual report 2020. Information, including Bing and Microsoft Consulting services is recognized ) for distinct... Months or less at the beginning of each of our inventory consumer is designed to deliver relevant advertising!

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