View or download past and current financial results (as published on SENS every six months), all integrated annual reports and sustainability reports. We are accelerating adoption of AI innovations from research to products. The following table summarizes the payments due by fiscal year for our outstanding contractual obligations as of June 30, 2022: 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. Fiscal Year 2016 Annual Report. 8 (71) Click the button below to request a report when . Fiscal Year 2015 Annual Report. Dynamics products and cloud services revenue increased 25% driven by Dynamics 365 growth of 39%. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. In March 2022, we completed our acquisition of Nuance Communications, Inc. (Nuance). We can be contacted between the hours of 9:00 a.m. to 5:00 p.m. Pacific Time to answer investment oriented questions about Microsoft. Cybersecurity is the number one threat facing every business today. We evaluated the reasonableness of management's estimates by considering how tax law, including statutes, regulations and case law, impacted management's judgments. Our increasing engagement with open source software will also cause us to license our intellectual property rights broadly in certain situations. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. These contracts are not designated as hedging instruments and are included in Other contracts in the tables below. For comparability of reporting, management considers non-GAAP measures in conjunction with GAAP financial results in evaluating business performance. Since 2017, weve helped more than 50 million people in unserved rural communities globally gain access to affordable broadband coverage. Our cloud business benefits from three economies of scale: datacenters that deploy computational resources at significantly lower cost per unit than smaller ones; datacenters that coordinate and aggregate diverse customer, geographic, and application demand patterns, improving the utilization of computing, storage, and network resources; and multi-tenancy locations that lower application maintenance labor costs. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of revenue. When it comes to advertising, we are creating a new monetization engine for the weban alternative that offers marketers and publishers more long-term viable ad solutionswhile upholding consumer privacy and strong data governance. 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. Trends run their course with lightning speed, with today's latest styles swiftly trumping yesterday's, which have already been consigned to the trash bin. In our 2021 Diversity and Inclusion Report, we reported that all racial and ethnic minority employees in the U.S. combined earn $1.006 for every $1.000 earned by their white counterparts, that women in the U.S. earn $1.002 for every $1.000 earned by their counterparts in the U.S. who are men, and women in the U.S. plus our twelve other largest employee geographies representing 86.6% of our global population (Australia, Canada, China, France, Germany, India, Ireland, Israel, Japan, Romania, Singapore, and the United Kingdom) combined earn $1.001 for every $1.000 by men in these countries. Many organizations that license our products and services transact directly with us through Enterprise Agreements and Enterprise Services contracts, with sales support from system integrators, independent software vendors, web agencies, and partners that advise organizations on licensing our products and services (Enterprise Agreement Software Advisors or ESA). This included a commitment to invest $1 billion over four years in new technologies and innovative climate solutions. Request Information View 2022 ESG Report On the other. 2022 Annual Report. Microsoft Corporation, Sandra E. Peterson 2,3 I want to close by thanking you for your continued investment in Microsoft. Microsoft Teams is the most used and most advanced platform for work, surpassing 270 million monthly active users this year. We previously 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. Chester Corp. ended the year carrying $11,529,000 worth of inventory. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Derivative instruments are recognized as either assets or liabilities and measured at fair value. 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. During the periods presented, we reported our financial performance based on the following segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. In making this judgment, we employ a systematic methodology that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. Microsoft Products and Services Agreements are designed for medium and large organizations that want to license cloud services and on-premises software as needed, with no organization-wide commitment, under a single, non-expiring agreement. We manage the average maturity of the fixed-income portfolio to achieve economic returns that correlate to certain global fixed-income indices. Net realizable value is the estimated selling price less estimated costs of completion, disposal, and transportation. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. Deloitte & Touche LLP and the internal auditors each have full and free access to the Audit Committee. Annual Reports will also contain 'Discussion and Analysis from the Management', along with Corporate Information, Report on Corporate Ggovernance and detailed financial results for the last 10 years. Annual Report 2021-22 (Double page) Annual Return 2021-22. It sustains our everyday practice of customer obsession. And, along with partner companies, we launched the Neurodiversity Career Connector, a jobs marketplace for neurodivergent job seekers. Together, Microsoft and Nuance will enable organizations across industries to accelerate their business goals with security-focused, cloud- based solutions infused with powerful, vertically optimized AI. Following are details of the purchase price allocated to the intangible assets acquired: On January 18, 2022, we entered into a definitive agreement to acquire Activision Blizzard, Inc. (Activision Blizzard) for $95.00 per share in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzards net cash. By using our site, you agree to our collection of information through the use of cookies. Department of Trade, Industry and Competition Annual Report 2021/2022. Fiscal Year 2021 Annual Report. Nearly all computer manufacturers offer server hardware for the Linux operating system and many contribute to Linux operating system development. We also invested in base salary adjustments for our datacenter and retail hourly employees and hourly equivalents outside the U.S. Apple distributes versions of its pre-installed application software, such as email and calendar products, through its PCs, tablets, and phones. The 2022 Annual Shareholders Meeting will be held as a virtual-only meeting. They are the clothes you choose to wear, the products with which you decorate your home, or celebrate a special occasion. From smart factories, to smart buildings, to smart cities, were helping organizations use Azure IoT, Azure Digital Twins, and Microsoft Mesh to digitize people, places, and things, in order to visualize, simulate, and analyze any business process. 3 Oct 2022. Office Commercial products and cloud services revenue increased 13% driven by Office 365 Commercial growth of 18%. Analysis of Zara Corporation's Sustainability Report and How the Company Should Change Their Strategy to Boost Their Sustainability Category Business, Environment Subcategory Strategy, Nature, Corporation Topic Strategic Management, Sustainability, Zara Words 1326 (3 pages) Downloads 114 Download for Free Equity investments without readily determinable fair values are written down to fair value if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than carrying value. Our Racial Equity Initiative focuses on three multi-year pillars, each containing actions and progress we expect to make or exceed by 2025. Microsoft Research is one of the worlds largest corporate research organizations and works in close collaboration with top universities around the world to advance the state-of-the-art in computer science and a broad range of other disciplines, providing us a unique perspective on future trends and contributing to our innovation. differences 91 And no company is better positioned to help them than Microsoft. This pricing methodology applies to our Level 2 investments, such as commercial paper, certificates of deposit, U.S. agency securities, foreign government bonds, mortgage- and asset-backed securities, corporate notes and bonds, and municipal securities. We, as a company, will do well when the world around us does well. Xbox enables people to connect and share online gaming experiences that are accessible on Xbox consoles, Windows-enabled devices, and other devices. .. 5.9. In addition the challenges presented by the functional and geographical integration of fashion production networks can only be overcome if global retailers manage their logistics efficiently and leverage the differentiated advantages of the modes of transport in relation to time. The management of Zara was smart and it quickly launched an e-commerce platform. 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. Revenue from consulting services is recognized as services are provided. Through this commitment we can allow everyone the chance to be their authentic selves and do their best work every day. Annual Financial Report: PDF [680.3 KB/ 98 pages] For the Period Ended March 2020. Our Main Goals 2022 / 100% of our electricity from renewables 2023 / 100% free of single use plastics for all our customers 2023 / 100% more sustainable cotton (organic, BC, and/or recycled cotton) 2023 / 100% sustainable man-made cellulosic fibres from more sustainable sources 2025 / 100% more sustainable linen and recycled polyester Compliance Certificate under SEBI (Share Based Employee Benefits and Sweat Equity Regulation), 2021. We apply a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. In comparison, the brand's valuation was around 18.4 billion U.S. dollars in 2019. But even more important will be technologys influence on the other 90% of the worlds economy. As of June 30, 2022, we employed approximately 221,000 people on a full-time basis, 122,000 in the U.S. and 99,000 internationally. Work for Inditex? We are 90 percent of the way to our 2025 commitment to double the number of Black and African American people managers, senior individual contributors, and senior leaders in the U.S., and 50 percent of the way for Hispanic and Latinx people managers, senior individual contributors, and senior leaders in the U.S. We exceeded our goal on increasing the percentage of transaction volumes with Black- and African American-owned financial institutions and increased our deposits with Black- and African American-owned minority depository institutions, enabling increased funds into local communities. Revenue from certain contracts is allocated among the segments based on the relative value of the underlying products and services, which can include allocation based on actual prices charged, prices when sold separately, or estimated costs plus a profit margin. Customers can use Azure through our global network of datacenters for computing, networking, storage, mobile and web application services, AI, IoT, cognitive services, and machine learning. And were extending our infrastructure to the 5G network edge with Azure for Operators, introducing new solutions to help telecom operators deliver ultra-low-latency services closer to end users. Organizations also license our products and services indirectly, primarily through licensing solution partners (LSP), distributors, value-added resellers (VAR), and retailers. SA is optional for customers that purchase perpetual licenses. The largest category of OEMs are direct OEMs as our relationship with them is managed through a direct agreement between Microsoft and the OEM. Collaborating to transform through sustainable management of our products. Timing of revenue recognition may differ from the timing of invoicing to customers. Internal development allows us to maintain competitive advantages that come from product differentiation and closer technical control over our products and services. Build the Intelligent Cloud and Intelligent Edge Platform. For access to additional financial information, visit the Investor Relations website online at: www.microsoft.com/investor. Operating expenses that are allocated primarily include those relating to marketing of products and services from which multiple segments benefit and are generally allocated based on relative gross margin. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2022, in conformity with accounting principles generally accepted in the United States of America. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The COVID-19 pandemic led to record unemployment, disrupting livelihoods of people around the world. At times, we may hold options, futures, and swap contracts. Our exclusive game content is created through Xbox Game Studios, a collection of first-party studios creating iconic and differentiated gaming experiences. PSP Partners, LLC, John W. Thompson 3,4 In 2019, the SAMR presented preliminary views as to certain possible violations of Chinas Anti-Monopoly Law. In August 2018, the trial court issued an order striking portions of the plaintiffs expert reports. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Across our ecosystem, we are more than 90% of the way toward our commitment to spend an incremental $500 million with Black- and African American-owned suppliers. Cosmos DB is the go-to database powering the worlds most demanding, mission-critical workloads, at any scale. GitHub provides a collaboration platform and code hosting service for developers. We also deliver relevant online advertising to a global audience. Globo, the biggest media and TV company in Brazil. We license software to organizations under volume licensing agreements to allow the customer to acquire multiple licenses of products and services instead of having to acquire separate licenses through retail channels. These reviews include analysis of demand forecasts, product life cycle status, product development plans, current sales levels, pricing strategy, and component cost trends. Microsoft Corporation. We must continue to evolve and adapt over an extended time in pace with this changing environment. Additionally, we are extending our infrastructure beyond the planet, bringing cloud computing to space. Service and other revenue includes sales from cloud-based solutions that provide customers with software, services, platforms, and content such as Office 365, Azure, Dynamics 365, and Xbox; solution support; and consulting services. Stock-based compensation expense and related income tax benefits were as follows: Stock awards entitle the holder to receive shares of Microsoft common stock as the award vests. The acquisition has been approved by Activision Blizzards shareholders, and we expect it to close in fiscal year 2023, subject to the satisfaction of certain regulatory approvals and other customary closing conditions. Certain income and expenses are not reported in tax returns and financial statements in the same year. We saw the strongest progress in years across several demographic groups, as you can see in our latest Diversity & Inclusion Report. 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. Annual Financial Report: PDF [654.8 KB/ 94 pages] . Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets in our consolidated balance sheets. These include quick guides for teams to use, such as Creating Team Agreements, Reconnecting as a Team, and Running Effective Hybrid Meetings. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise. These non-GAAP financial measures presented should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. Our platforms and tools help drive small business productivity, large business competitiveness, and public-sector efficiency. Other reconciling items, net consists primarily of tax credits and GILTI tax, and in fiscal year 2021, includes tax benefits from the India Supreme Court decision on withholding taxes. In these cases, the hardware and software license are accounted for as a single performance obligation and revenue is recognized at the point in time when ownership is transferred to resellers or directly to end customers through retail stores and online marketplaces. Its what I believe will make the difference between organizations that thrive and those that get left behind. Second, the productive structure, combining nearby and distant manufacturing, and both dispersion and concentration spatially and in production, also relies on the effectiveness of the logistical model. 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). Left behind come from product differentiation and closer technical control over our products and cloud services revenue 13! Around 18.4 billion U.S. dollars in 2019 website online at: www.microsoft.com/investor Nuance Communications, Inc. Nuance! Worlds most zara annual report 2022 pdf, mission-critical workloads, at any scale relationship with them is through... For customers that purchase perpetual licenses questions about Microsoft of information through the of... To answer investment oriented questions about Microsoft ended the year carrying $ 11,529,000 worth inventory... 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