MSFT Microsoft annual report details 2024

MSFT Microsoft annual report details 2024

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MSFT Microsoft annual report details 2024

@financepresentations6 days ago

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K

☒ ANNUAL R…

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Indicate by check mark whether any of those error corrections are restatements that required a reco…

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2
MICROSOFT CORPORATION
FORM 10-K
For the Fiscal Year Ended June 30, 2024
INDEX
Page
PART I
…

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PART I
Item 1
3
Note About Forward-Looking Statements
This report includes estimates, projectio…

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PART I
Item 1
4
The Ambitions That Drive Us
To achieve our vision, our research and development…

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PART I
Item 1
5
the Copilot stack for Microsoft, enterprises, and developers. Organizations larg…

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PART I
Item 1
6
Our Future Opportunity
We are focused on helping customers use the breadth and …

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PART I
Item 1
7
Addressing Racial Injustice and Inequity
In June 2020, we outlined a series of …

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PART I
Item 1
8
As of June 30, 2024, we employed approximately 228,000 people on a full-time bas…

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PART I
Item 1
9
Office Commercial
Office Commercial is designed to increase personal, team, and…

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PART I
Item 1
10
teamwork and collaboration software. Zoom offers videoconferencing and cloud ph…

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PART I
Item 1
11
intelligent solutions, along with providing training and certification to devel…

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PART I
Item 1
12
Windows
The Windows operating system is designed to deliver a more personal co…

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PART I
Item 1
13
applications and services and to benefit our developer and partner ecosystems b…

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PART I
Item 1
14
RESEARCH AND DEVELOPMENT
Product and Service Development, and Intellectual Pr…

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PART I
Item 1
15
Investing in the Future
Our success is based on our ability to create new and…

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PART I
Item 1
16
Distributors and Resellers
Organizations also license our products and servic…

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PART I
Item 1
17
Open Value
Open Value agreements are a simple, cost-effective way to acquire t…

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PART I
Item 1
18
INFORMATION ABOUT OUR EXECUTIVE OFFICERS
Our executive officers as of July 30,…

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PART I
Item 1
19
AVAILABLE INFORMATION
Our Internet address is www.microsoft.com. At our Invest…

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PART I
Item 1A
20
ITEM 1A. RISK FACTORS
Our operations and financial results are subject to var…

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PART I
Item 1A
21
For all of these reasons, we may not be able to compete successfully against o…

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PART I
Item 1A
22
Our AI systems offer users powerful tools and capabilities. However, there may…

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PART I
Item 1A
23
a significant charge in our consolidated financial statements during the perio…

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PART I
Item 1A
24
Our internal IT environment continues to evolve. Often, we are early adopters …

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PART I
Item 1A
25
Development and deployment of defensive measures
To defend against security t…

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PART I
Item 1A
26
Abuse of our platforms may harm our reputation or user engagement.
Advertisin…

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PART I
Item 1A
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or other social, economic, or political issues, our reputation, competitive po…

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PART I
Item 1A
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LEGAL, REGULATORY, AND LITIGATION RISKS
Government enforcement under competit…

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PART I
Item 1A
29
Periods of intense diplomatic or armed conflict, such as the ongoing conflict …

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PART I
Item 1A
30
via technology such as cookies. In addition, laws requiring us to retrieve and…

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PART I
Item 1A
31
We earn a significant amount of our operating income outside the U.S. A change…

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PART I
Item 1A
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• Public scrutiny of our decisions regarding user privacy, data practices, con…

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PART I
Item 1A
33
The long-term effects of climate change on the global economy and the IT indus…

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PART I
Item 1B, 1C
34
ITEM 1B. UNRESOLVED STAFF COMMENTS
We have received no written comments …

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PART I
Item 1C
35
When appropriate, we utilize external service providers to assess, test, or ot…

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PART I
Item 2, 3, 4
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ITEM 2. PROPERTIES
Our corporate headquarters are located in Redmond, W…

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PART II
Item 5, 6
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PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER…

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PART II
Item 7
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESU…

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PART II
Item 7
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Industry Trends
Our industry is dynamic and highly competitive, with frequen…

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PART II
Item 7
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Additional information on our reportable segments is contained in Note 19 – Se…

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PART II
Item 7
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Dynamics products and cloud services
revenue growth
Revenue from Dynamics p…

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PART II
Item 7
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SUMMARY RESULTS OF OPERATIONS
(In millions, except percentages and per share …

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PART II
Item 7
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SEGMENT RESULTS OF OPERATIONS
(In millions, except percentages) 2024 2023
Pe…

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PART II
Item 7
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• Gross margin increased $11.6 billion or 19% driven by growth in Azure. Gross…

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PART II
Item 7
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Sales and Marketing
(In millions, except percentages) 2024 2023
Percentage
…

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PART II
Item 7
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Fiscal Year 2024 Compared with Fiscal Year 2023
Interest and dividends income…

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PART II
Item 7
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measures in conjunction with GAAP financial results in evaluating business per…

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PART II
Item 7
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to our Level 2 investments, such as commercial paper, certificates of deposit,…

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PART II
Item 7
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If our customers choose to license cloud-based versions of our products and se…

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PART II
Item 7
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continue, including new facilities, datacenters, and computer systems for rese…

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PART II
Item 7
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Impairment of Investment Securities
We review debt investments quarterly for…

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PART II
Item 7
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Legal and Other Contingencies
The outcomes of legal proceedings and claims b…

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PART II
Item 7
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STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS
Management…

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PART II
Item 7A
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
RISKS
…

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PART II
Item 8
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INCOME STATEMENTS
(In m…

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PART II
Item 8
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COMPREHENSIVE INCOME STATEMENTS
(In millions)
Year Ended June 30, 2024 2023 …

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PART II
Item 8
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BALANCE SHEETS
(In millions)
June 30, 2024 2023
Assets
Current assets:
C…

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PART II
Item 8
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CASH FLOWS STATEMENTS
(In millions)
Year Ended June 30, 2024 2023 2022
Oper…

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PART II
Item 8
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STOCKHOLDERS’ EQUITY STATEMENTS
(In millions, except per share amounts)
Yea…

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PART II
Item 8
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NOTES TO FINANCIAL STATEMENTS
NOTE 1 — ACCOUNTING POLICIES
Accounting Princ…

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PART II
Item 8
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Revenue Recognition
Revenue is recognized upon transfer of control of promise…

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PART II
Item 8
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Judgment is required to determine the SSP for each distinct performance obliga…

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PART II
Item 8
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Activity in the allowance for doubtful accounts was as follows:
(In millions)…

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PART II
Item 8
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product failure rates, historical and projected repair costs, and knowledge of…

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PART II
Item 8
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Debt investments are classified as available-for-sale and realized gains and l…

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PART II
Item 8
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observable inputs including interest rate curves, credit spreads, foreign exch…

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PART II
Item 8
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Goodwill
Goodwill is tested for impairment at the reporting unit level (oper…

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PART II
Item 8
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The components of basic and diluted EPS were as follows:
(In millions, except…

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PART II
Item 8
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Net recognized gains (losses) on equity investments were as follows:
(In mill…

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PART II
Item 8
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(In millions)
Fair Value
Level
Adjusted
Cost Basis
Unrealized
Gains
U…

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PART II
Item 8
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Less than 12 Months 12 Months or Greater
Total
Unrealized
(In millions) Fai…

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PART II
Item 8
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Interest Rate
Interest rate risks related to certain fixed-rate debt are hed…

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PART II
Item 8
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Fair Values of Derivative Instruments
The following table presents our deriva…

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PART II
Item 8
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Gains (losses) on derivative instruments recognized in other income (expense),…

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PART II
Item 8
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NOTE 7 — PROPERTY AND EQUIPMENT
The components of property and equipment wer…

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PART II
Item 8
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Goodwill was assigned to our More Personal Computing segment. The goodwill was…

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PART II
Item 8
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The allocation of the purchase price to goodwill was completed as of December …

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PART II
Item 8
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Goodwill Impairment
We test goodwill for impairment annually on May 1 at the …

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PART II
Item 8
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The following table outlines the estimated future amortization expense related…

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PART II
Item 8
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(b) Refer to Note 5 – Derivatives for further information on the interest rate…

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PART II
Item 8
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U.S. and foreign components of income before income taxes were as follows:
(…

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PART II
Item 8
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The decrease in our effective tax rate for fiscal year 2024 compared to fiscal…

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PART II
Item 8
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The valuation allowance disclosed in the table above relates to the foreign ne…

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PART II
Item 8
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NOTE 13 — UNEARNED REVENUE
Unearned revenue by segment was as follows:
(In…

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PART II
Item 8
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Supplemental cash flow information related to leases was as follows:
(In mill…

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PART II
Item 8
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The following table outlines maturities of our lease liabilities as of June 30…

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PART II
Item 8
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Irish Data Protection Commission Matter
In 2018, the Irish Data Protection Co…

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PART II
Item 8
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We repurchased the following shares of common stock under the share repurchase…

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PART II
Item 8
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NOTE 17 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following table s…

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PART II
Item 8
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Stock Plans
Stock awards entitle the holder to receive shares of Microsoft co…

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PART II
Item 8
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Employees purchased the following shares during the periods presented:
(Share…

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PART II
Item 8
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More Personal Computing
Our More Personal Computing segment consists of produ…

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PART II
Item 8
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No sales to an individual customer or country other than the United States acc…

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PART II
Item 8
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders a…

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PART II
Item 8
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Revenue Recognition – Refer to Note 1 to the financial statements
Critical Au…

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PART II
Item 8
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Income Taxes – Uncertain Tax Positions – Refer to Note 12 to the financial sta…

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PART II
Item 8
97
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures…

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PART II
Item 9, 9A
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND …

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PART II
Item 9A
99
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders…

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PART II, III
Item 9B, 9C, 10
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ITEM 9B. OTHER INFORMATION
Insider Trading Arrangements
None …

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PART III
Item 11, 12, 13, 14
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ITEM 11. EXECUTIVE COMPENSATION
The information in the Proxy S…

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PART IV
Item 15
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PART IV
ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES
(a) Financial…

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PART IV
Item 15
103
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
104
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
105
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
106
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
107
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
108
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
109
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
110
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
111
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
112
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
113
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 15
114
Incorporated by Reference
Exhibit
Number Exhibit Description
Filed
Herew…

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PART IV
Item 16
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ITEM 16. FORM 10-K SUMMARY
None.

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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act…

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117
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been sign…

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Exhibit 4.26
DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF TH…

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not purport to be complete. It is subject to and qualified in its entirety by reference to the inde…

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imposition of exchange controls or other circumstances beyond our control or if the euro is no long…

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At any time on or after February 2, 2033, we will have the right at our option to redeem the 2033
…

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prospectus supplement, we have become obligated to pay additional amounts as described under “-
Pa…

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(f) any tax, assessment or other governmental charge which would not have been imposed but
for th…

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treat the Common Depositary or any successor nominee to the Common Depositary as the owner of
the…

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• if requested, the trustee receives from us, an officers’ certificate and an opinion of
counsel …

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(6) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
• …

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(4) the trustee has failed to institute proceedings 60 days after the receipt of such notice, reque…

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We have elected pursuant to Section 1301 of the indenture, to have both Section 1302 (legal
defea…

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Exhibit 10.5
MICROSOFT CORPORATION DEFERRED COMPENSATION PLAN
(Amended and Restated Effective as…

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Annual Bonus - means the amount payable to an Eligible Employee as an annual
bonus that is awarde…

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based incentives, commitment-based incentives, SCA bonuses, or any other pay that the
Plan Admini…

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Open Enrollment - means the period or periods during each Plan Year when
Eligible Employees may e…

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401(k) Plan - means the Microsoft Corporation Savings Plus 401(k) Plan.
4. Participation.
4.1 An …

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(c) Alternative Election Deadlines. Notwithstanding the rules in
subsection (b), if the Plan Admi…

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Participant, at the election of the Company in accordance with Code section 409A.
6. Distribution …

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(i) If the Participant elected commencement upon
Retirement, the distribution will commence in th…

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(d) For purposes of determining the proper death beneficiary under this
Plan, this Plan shall not…

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is paid or made available to the Participant (the "Taxes"), the Company shall pay a portion of
su…

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and submitted to the Senior HR Officer at such address as may be specified from time to
time. Cla…

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(ii) specific reference to pertinent Plan provisions on which the
adverse determination is based;…

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Plan shall decrease the amounts credited to a Participant's Account as of such
amendment or termi…

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requested by the Plan Administrator. If the Participant refuses to cooperate, the Company
shall h…

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such dispute is resolved through arbitration or litigation in court, the prevailing party(ies)
sh…

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APPENDIX A
DESIGNATED SUBSIDIARIES
(As of April 1, 2024)
1654: MOL Corporation
1693: Vexcel Cor…

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APPENDIX B
GRANDFATHERED AMOUNTS
Distribution of amounts that were earned and vested (within the …

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corresponding Bonus would otherwise have been paid or the date the Option was scheduled
to expire…

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APPENDIX C
2005 DEFERRED COMPENSATION
This Appendix C sets forth the special rules applicable to …

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Exhibit 19.1
General Insider Trading Policy
1. PURPOSE
To prevent the misuse of material, nonpu…

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• Information is 'material' if there is a substantial likelihood that a reasonable investor would c…

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D. Restrictions on Microsoft Officers and Other Designated Employees
Microsoft has a policy requir…

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Exhibit 19.2
Restricted Trading Window Policy
1. PURPOSE
This policy describes the restriction…

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B. Open Trading Window
If you are an Insider, you may only trade (or gift) Microsoft securities du…

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2. Gifts
Gifts of Microsoft stock may be made only during an Open Window Period and your status in…

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If you have a question about this policy, its application in relation to a proposed transaction, or…

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Exhibit 19.3
Insider Trading Compliance and Preclearance Policies
for Section 16 Officers and D…

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Window Period”). If, for example, Microsoft made an earnings announcement on Thursday, the trading …

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Preclearance requests should be sent by email to (**)@microsoft.com. For questions, please call any…

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i. Trading Restrictions. There is no restriction on purchases of Microsoft stock under Microsoft’s …

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Employee Insiders not in a financial reporting oversight role and directors may use Microsoft’s ind…

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Exhibit 21
SUBSIDIARIES OF REGISTRANT
The following is a list of subsidiaries of Microsoft Corp…

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Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorpo…

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Exhibit 31.1
CERTIFICATION
I, Satya Nadella, certify that:
1. I have reviewed this annual rep…

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Exhibit 31.2
CERTIFICATION
I, Amy E. Hood, certify that:
1. I have reviewed this annual repor…

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Exhibit 32.1
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.…

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Exhibit 32.2
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.…

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Exhibit 97.1
Microsoft Corporation
Executive Compensation Recovery Policy
This policy covers Mi…

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In the reasonable exercise of its business judgment under this Policy, the Compensation Committee m…

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EXHIBIT A
DEFINITIONS
“Applicable Period” means (a) in the case of any Restatement, the three com…

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“Incentive Compensation” means any compensation that is granted, earned, or vested based wholly or …

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MSFT Microsoft annual report details 2024

@financepresentations

This presentation covers the financial performance, key AI strategies, and sustainability efforts of Microsoft for the fiscal year 2024. It highlights how Microsoft is driving innovation in business processes and committing to responsible environmental practices while embracing AI technology to enhance productivity.

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#Innovation #Microsoft2024 #Sustainability #AI #FinancialPerformance

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