8-K
MICROSOFT CORP (MSFT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 26, 2022
Microsoft Corporation
| Washington | 001-37845 | 91-1144442 |
|---|---|---|
| (State or Other Jurisdiction<br><br>of Incorporation) | (Commission<br><br>File Number) | (IRS Employer<br><br>Identification No.) |
| One Microsoft Way, Redmond, Washington | 98052-6399 | |
| --- | --- |
(425) 882-8080
www.microsoft.com/investor
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of exchange on which registered |
|---|---|---|
| Common stock, $0.00000625 par value per share | MSFT | NASDAQ |
| 3.125% Notes due 2028 | MSFT | NASDAQ |
| 2.625% Notes due 2033 | MSFT | NASDAQ |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On April 26, 2022, Microsoft Corporation issued a press release announcing its financial results for the fiscal quarter ended March 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits:
| 99.1 | Press release, dated April 26, 2022, issued by Microsoft Corporation |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MICROSOFT CORPORATION | |
|---|---|
| (Registrant) | |
| Date: April 26, 2022 | /S/ ALICE L. JOLLA |
| Alice L. Jolla | |
| Corporate Vice President and Chief Accounting<br>Officer |
EX-99.1
Exhibit 99.1
Microsoft Cloud Strength Fuels Third Quarter Results
REDMOND, Wash. — April 26, 2022 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2022, as compared to the corresponding period of last fiscal year:
| • | Revenue was $49.4 billion and increased 18% |
|---|---|
| • | Operating income was $20.4 billion and increased 19% |
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| • | Net income was $16.7 billion and increased 8% GAAP (up 13%<br>non-GAAP) |
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| • | Diluted earnings per share was $2.22 and increased 9% GAAP (up 14%<br>non-GAAP) |
| --- | --- |
Revenue and diluted earnings per share results include $(302) million and $(0.03) of additional impact from unfavorable foreign exchange rate movement within the quarter and $111 million and $(0.01) from Nuance, which closed on March 4, 2022, neither of which were included in the forward-looking guidance provided on January 25, 2022. Additional details are provided in the Earnings Call Slides.
“Going forward, digital technology will be the key input that powers the world’s economic output,” said Satya Nadella, chairman and chief executive officer of Microsoft. “Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”
“Continued customer commitment to our cloud platform and strong sales execution drove better than expected commercial bookings growth of 28% and Microsoft Cloud revenue of $23.4 billion, up 32% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
The following table reconciles our financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.
| Three Months Ended March 31, | |||||
|---|---|---|---|---|---|
| ($ in millions, except per share amounts) | Revenue | ||||
| 2021 AsReported (GAAP) | **** | 41,706 | 17,048 | 15,457 | $2.03 |
| Net income tax<br>benefit related to India Supreme Court decision on withholding taxes | — | — | (620) | (0.08) | |
| 2021 AsAdjusted (non-GAAP) | **** | 41,706 | 17,048 | 14,837 | $1.95 |
| 2022 AsReported (GAAP) | **** | 49,360 | 20,364 | 16,728 | $2.22 |
| Percentage Change Y/Y (GAAP) | 18% | 19% | 8% | 9% | |
| Percentage Change Y/Y<br>(non-GAAP) | 18% | 19% | 13% | 14% | |
| Percentage Change<br>Y/Y (non-GAAP) Constant Currency | 21% | 23% | 17% | 18% |
All values are in US Dollars.
Business Highlights
Revenue in Productivity and Business Processes was $15.8 billion and increased 17%, with the following business highlights:
| • | Office Commercial products and cloud services revenue increased 12% (up 14% CC) driven by Office 365<br>Commercial revenue growth of 17% (up 20% CC) |
|---|---|
| • | Office Consumer products and cloud services revenue increased 11% (up 12% CC) and Microsoft 365<br>Consumer subscribers grew to 58.4 million |
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| • | LinkedIn revenue increased 34% (up 35% CC) |
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| • | Dynamics products and cloud services revenue increased 22% (up 25% CC) driven by Dynamics 365 revenue<br>growth of 35% (up 38% CC) |
| --- | --- |
Revenue in Intelligent Cloud was $19.1 billion and increased 26%, with the following business highlights:
| • | Server products and cloud services revenue increased 29% (up 32% CC) driven by Azure and other cloud<br>services revenue growth of 46% (up 49% CC) |
|---|
Revenue in More Personal Computing was $14.5 billion and increased 11%, with the following business highlights:
| • | Windows OEM revenue increased 11% |
|---|---|
| • | Windows Commercial products and cloud services revenue increased 14% (up 19% CC) |
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| • | Xbox content and services revenue increased 4% (up 6% CC) |
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| • | Search and news advertising revenue excluding traffic acquisition costs increased 23% (up 25% CC) |
| --- | --- |
| • | Surface revenue increased 13% (up 18% CC) |
| --- | --- |
Microsoft returned $12.4 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2022, an increase of 25% compared to the third quarter of fiscal year 2021.
Business Outlook
Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.
Quarterly Highlights, Product Releases, and Enhancements
Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.
Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.
Environmental, Social, and Governance (ESG)
To better execute Microsoft’s mission, we focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our investor relations ESG website.
WebcastDetails
Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, deputy general counsel, and Brett Iversen, general manager of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on April 26, 2023.
Non-GAAP Definition
The India Supreme Court Decision Impact. In March 2021, the India Supreme Court issued a decision on withholding taxes in the case of Engineering Analysis Centre of Excellence Private Limited vs The Commissioner of Income Tax. Microsoft has historically paid India withholding taxes on software sales through distributor withholding and tax audit assessments in India. The India Supreme Court ruled favorably for companies in 86 separate appeals, some dating back to 2012, holding that software sales are not subject to India withholding taxes. Although Microsoft was not a party to the appeals, Microsoft’s software sales in India were determined to be not subject to withholding taxes. Therefore, Microsoft recorded a net income tax benefit of $620 million in the third quarter of fiscal year 2021 to reflect the results of the India Supreme Court decision impacting fiscal year 1996 through fiscal year 2016.
Microsoft has provided non-GAAP financial measures related to the India Supreme Court decision to aid investors in better understanding our performance. Microsoft believes these non-GAAP measures assist investors by providing additional insight into its operational performance and help clarify trends affecting its business. For comparability of reporting, management considers non-GAAP measures in conjunction with GAAP financial results in evaluating business performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Constant Currency
Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Financial Performance Constant Currency Reconciliation
| Three Months Ended March 31, | |||||
|---|---|---|---|---|---|
| ($ in millions, except per share amounts) | Revenue | ||||
| 2021 AsReported (GAAP) | **** | 41,706 | 17,048 | 15,457 | $2.03 |
| 2021 AsAdjusted (non-GAAP) | **** | 41,706 | 17,048 | 14,837 | $1.95 |
| 2022 AsReported (GAAP) | **** | 49,360 | 20,364 | 16,728 | $2.22 |
| Percentage Change<br>Y/Y (GAAP) | 18% | 19% | 8% | 9% | |
| Percentage Change<br>Y/Y (non-GAAP) | 18% | 19% | 13% | 14% | |
| ConstantCurrency Impact | **** | (1,003) | (677) | (577) | $(0.08) |
| Percentage Change<br>Y/Y (non-GAAP) Constant Currency | 21% | 23% | 17% | 18% |
All values are in US Dollars.
Segment Revenue Constant Currency Reconciliation
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| ($ in millions) | Productivity andBusiness Processes | |||
| 2021 AsReported (GAAP) | **** | 13,552 | 15,118 | $13,036 |
| 2022 AsReported (GAAP) | **** | 15,789 | 19,051 | $14,520 |
| Percentage Change<br>Y/Y (GAAP) | 17% | 26% | 11% | |
| ConstantCurrency Impact | **** | (332) | (418) | $(253) |
| Percentage Change<br>Y/Y (non-GAAP) Constant Currency | 19% | 29% | 13% |
All values are in US Dollars.
Selected Product and Service Revenue Constant Currency Reconciliation
| Three Months Ended March 31, 2022 | ||||||
|---|---|---|---|---|---|---|
| Percentage ChangeY/Y (GAAP) | Constant CurrencyImpact | Percentage ChangeY/Y (non-GAAP)Constant<br><br><br>Currency | ||||
| Office Commercial productsand cloud services | **** | 12% | **** | 2% | **** | 14% |
| Office 365Commercial | **** | 17% | **** | 3% | **** | 20% |
| Office Consumer productsand cloud services | **** | 11% | **** | 1% | **** | 12% |
| **** | 34% | **** | 1% | **** | 35% | |
| Dynamics products andcloud services | **** | 22% | **** | 3% | **** | 25% |
| Dynamics365 | **** | 35% | **** | 3% | **** | 38% |
| Server products and cloudservices | **** | 29% | **** | 3% | **** | 32% |
| Azure and other cloudservices | **** | 46% | **** | 3% | **** | 49% |
| WindowsOEM | **** | 11% | **** | 0% | **** | 11% |
| Windows Commercialproducts and cloud services | **** | 14% | **** | 5% | **** | 19% |
| Xbox content andservices | **** | 4% | **** | 2% | **** | 6% |
| Search and newsadvertising excluding traffic acquisition costs | **** | 23% | **** | 2% | **** | 25% |
| Surface | **** | 13% | **** | 5% | **** | 18% |
About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
Forward-Looking Statements
Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:
| • | intense competition in all of our markets that may lead to lower revenue or operating margins; |
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| • | increasing focus on cloud-based services presenting execution and competitive risks; |
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| • | significant investments in products and services that may not achieve expected returns; |
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| • | acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our<br>business; |
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| • | impairment of goodwill or amortizable intangible assets causing a significant charge to earnings; |
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| • | cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs,<br>liability claims, or harm to our reputation or competitive position; |
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| • | disclosure and misuse of personal data that could cause liability and harm to our reputation; |
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| • | the possibility that we may not be able to protect information stored in our products and services<br>from use by others; |
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| • | abuse of our advertising or social platforms that may harm our reputation or user engagement; |
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| • | the development of the internet of things presenting security, privacy, and execution risks; |
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| • | issues about the use of artificial intelligence in our offerings that may result in competitive harm,<br>legal liability, or reputational harm; |
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| • | excessive outages, data losses, and disruptions of our online services if we fail to maintain an<br>adequate operations infrastructure; |
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| • | quality or supply problems; |
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| • | government litigation and regulatory activity relating to competition rules that may limit how we<br>design and market our products; |
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| • | potential consequences under trade, anti-corruption, and other laws resulting from our global<br>operations; |
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| • | laws and regulations relating to the handling of personal data that may impede the adoption of our<br>services or result in increased costs, legal claims, fines, or reputational damage; |
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| • | claims against us that may result in adverse outcomes in legal disputes; |
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| • | uncertainties relating to our business with government customers; |
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| • | additional tax liabilities; |
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| • | the possibility that we may fail to protect our source code; |
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| • | legal changes, our evolving business model, piracy, and other factors may decrease the value of our<br>intellectual property; |
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| • | claims that Microsoft has infringed the intellectual property rights of others; |
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| • | damage to our reputation or our brands that may harm our business and operating results; |
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| • | adverse economic or market conditions that may harm our business; |
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| • | catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business; |
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| • | exposure to increased economic and operational uncertainties from operating a global business,<br>including the effects of foreign currency exchange and |
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| • | the dependence of our business on our ability to attract and retain talented employees. |
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For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.
All information in this release is as of March 31, 2022. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.
For more information, press only:
Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com
For more information, financial analysts and investors only:
Brett Iversen, General Manager, Investor Relations, (425) 706-4400
Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.
MICROSOFT CORPORATION
INCOME STATEMENTS
(In millions, except per share amounts) (Unaudited)
| Three Months Ended<br><br><br>March 31, | |||||
|---|---|---|---|---|---|
| 2022 | |||||
| Revenue: | |||||
| Product | **** | 17,366 | 16,873 | 54,776 | $52,136 |
| Service and other | **** | 31,994 | 24,833 | 91,629 | 69,800 |
| Total revenue | **** | 49,360 | 41,706 | 146,405 | 121,936 |
| Cost of revenue: | |||||
| Product | **** | 4,584 | 4,277 | 14,707 | 13,932 |
| Service and other | **** | 11,031 | 8,768 | 31,514 | 24,309 |
| Total cost of revenue | **** | 15,615 | 13,045 | 46,221 | 38,241 |
| Gross margin | **** | 33,745 | 28,661 | 100,184 | 83,695 |
| Research and development | **** | 6,306 | 5,204 | 17,663 | 15,029 |
| Sales and marketing | **** | 5,595 | 5,082 | 15,521 | 14,260 |
| General and administrative | **** | 1,480 | 1,327 | 4,151 | 3,585 |
| Operating income | **** | 20,364 | 17,048 | 62,849 | 50,821 |
| Other income (expense), net | **** | (174) | 188 | 380 | 876 |
| Income before income taxes | **** | 20,190 | 17,236 | 63,229 | 51,697 |
| Provision for income taxes | **** | 3,462 | 1,779 | 7,231 | 6,884 |
| Net income | **** | 16,728 | 15,457 | 55,998 | $44,813 |
| Earnings per share: | |||||
| Basic | **** | 2.23 | 2.05 | 7.46 | $5.93 |
| Diluted | **** | 2.22 | 2.03 | 7.41 | $5.88 |
| Weighted average shares outstanding: | **** | ||||
| Basic | **** | 7,493 | 7,539 | 7,504 | 7,554 |
| Diluted | **** | 7,534 | 7,597 | 7,552 | 7,617 |
All values are in US Dollars.
COMPREHENSIVE INCOME STATEMENTS
(In millions) (Unaudited)
| Three Months EndedMarch 31, | Nine Months EndedMarch 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| Net income | $ | 16,728 | $ | 15,457 | $ | 55,998 | $ | 44,813 |
| Other comprehensive income (loss), net of tax: | ||||||||
| Net change related to derivatives | **** | 6 | 18 | **** | 8 | 30 | ||
| Net change related to investments | **** | (2,882) | (1,705) | **** | (4,047) | (2,398) | ||
| Translation adjustments and other | **** | (37) | (218) | **** | (259) | 634 | ||
| Other comprehensive loss | **** | (2,913) | (1,905) | **** | (4,298) | (1,734) | ||
| Comprehensive income | $ | 13,815 | $ | 13,552 | $ | 51,700 | $ | 43,079 |
BALANCE SHEETS
(In millions) (Unaudited)
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | 12,498 | $14,224 |
| Short-term investments | 92,195 | 116,110 |
| Total cash, cash equivalents, and short-term<br>investments | 104,693 | 130,334 |
| Accounts receivable, net of allowance for doubtful accounts of<br>505 and 751 | 32,613 | 38,043 |
| Inventories | 3,296 | 2,636 |
| Other current assets | 13,320 | 13,393 |
| Total current assets | 153,922 | 184,406 |
| Property and equipment, net of accumulated depreciation of<br>58,053 and 51,351 | 70,298 | 59,715 |
| Operating lease right-of-use assets | 12,916 | 11,088 |
| Equity investments | 6,907 | 5,984 |
| Goodwill | 67,371 | 49,711 |
| Intangible assets, net | 11,348 | 7,800 |
| Other long-term assets | 21,845 | 15,075 |
| Total assets | 344,607 | $333,779 |
| Liabilities and stockholders’<br>equity | ||
| Current liabilities: | ||
| Accounts payable | 16,085 | $15,163 |
| Current portion of long-term debt | 1,749 | 8,072 |
| Accrued compensation | 9,067 | 10,057 |
| Short-term income taxes | 4,646 | 2,174 |
| Short-term unearned revenue | 34,027 | 41,525 |
| Other current liabilities | 11,865 | 11,666 |
| Total current liabilities | 77,439 | 88,657 |
| Long-term debt | 48,177 | 50,074 |
| Long-term income taxes | 26,483 | 27,190 |
| Long-term unearned revenue | 2,769 | 2,616 |
| Deferred income taxes | 304 | 198 |
| Operating lease liabilities | 11,357 | 9,629 |
| Other long-term liabilities | 15,154 | 13,427 |
| Total liabilities | 181,683 | 191,791 |
| Commitments and contingencies | ||
| Stockholders’ equity: | ||
| Common stock and<br>paid-in capital—shares authorized 24,000; outstanding 7,483 and 7,519 | 85,767 | 83,111 |
| Retained earnings | 79,633 | 57,055 |
| Accumulated other comprehensive income (loss) | (2,476) | 1,822 |
| Total stockholders’ equity | 162,924 | 141,988 |
| Total liabilities and stockholders’ equity | 344,607 | $333,779 |
All values are in US Dollars.
CASH FLOWS STATEMENTS
(In millions) (Unaudited)
| Three Months Ended March 31, | |||||
|---|---|---|---|---|---|
| 2022 | |||||
| Operations | |||||
| Net income | **** | 16,728 | 15,457 | 55,998 | $44,813 |
| Adjustments to reconcile net income to net cash from operations: | |||||
| Depreciation, amortization, and other | **** | 3,773 | 2,936 | 10,481 | 8,342 |
| Stock-based compensation expense | **** | 1,906 | 1,525 | 5,505 | 4,547 |
| Net recognized losses (gains) on investments and derivatives | **** | 105 | (351) | (566) | (833) |
| Deferred income taxes | **** | (198) | (88) | (5,985) | (116) |
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | **** | 857 | 290 | 5,800 | 5,125 |
| Inventories | **** | (279) | (329) | (662) | (349) |
| Other current assets | **** | 91 | 478 | 1,861 | 1,154 |
| Other long-term assets | **** | (724) | (885) | (2,230) | (2,446) |
| Accounts payable | **** | 520 | 833 | 284 | 1,181 |
| Unearned revenue | **** | (209) | (473) | (7,437) | (6,764) |
| Income taxes | **** | 1,091 | 1,074 | 1,687 | (2,277) |
| Other current liabilities | **** | 1,287 | 1,590 | (1,111) | 394 |
| Other long-term liabilities | **** | 438 | 122 | 781 | 1,259 |
| Net cash from operations | **** | 25,386 | 22,179 | 64,406 | 54,030 |
| Financing | |||||
| Cash premium on debt exchange | **** | 0 | (1,754) | 0 | (1,754) |
| Repayments of debt | **** | (4,197) | (500) | (9,023) | (3,750) |
| Common stock issued | **** | 477 | 396 | 1,380 | 1,243 |
| Common stock repurchased | **** | (8,822) | (6,930) | (23,939) | (20,208) |
| Common stock cash dividends paid | **** | (4,645) | (4,221) | (13,503) | (12,307) |
| Other, net | **** | (158) | (183) | (522) | (339) |
| Net cash used in financing | **** | (17,345) | (13,192) | (45,607) | (37,115) |
| Investing | |||||
| Additions to property and equipment | **** | (5,340) | (5,089) | (17,015) | (14,170) |
| Acquisition of companies, net of cash acquired, and purchases of intangible and<br>other assets | **** | (18,719) | (7,512) | (20,775) | (8,408) |
| Purchases of investments | **** | (8,723) | (18,375) | (21,537) | (48,047) |
| Maturities of investments | **** | 1,099 | 15,016 | 15,214 | 44,546 |
| Sales of investments | **** | 16,693 | 5,876 | 25,218 | 10,711 |
| Other, net | **** | (1,181) | 400 | (1,687) | (1,356) |
| Net cash used in investing | **** | (16,171) | (9,684) | (20,582) | (16,724) |
| Effect of foreign exchange rates on cash and cash equivalents | **** | 24 | (33) | 57 | (65) |
| Net change in cash and cash equivalents | **** | (8,106) | (730) | (1,726) | 126 |
| Cash and cash equivalents, beginning of period | **** | 20,604 | 14,432 | 14,224 | 13,576 |
| Cash and cash equivalents, end of period | **** | 12,498 | 13,702 | 12,498 | $13,702 |
All values are in US Dollars.
SEGMENT REVENUE AND OPERATING INCOME
(In millions) (Unaudited)
| Three Months Ended<br><br><br>March 31, | |||||
|---|---|---|---|---|---|
| 2022 | |||||
| Revenue | |||||
| Productivity and Business Processes | **** | 15,789 | 13,552 | 46,764 | $39,224 |
| Intelligent Cloud | **** | 19,051 | 15,118 | 54,342 | 42,705 |
| More Personal Computing | **** | 14,520 | 13,036 | 45,299 | 40,007 |
| Total | **** | 49,360 | 41,706 | 146,405 | $121,936 |
| Operating Income | |||||
| Productivity and Business Processes | **** | 7,184 | 6,029 | 22,453 | $17,916 |
| Intelligent Cloud | **** | 8,281 | 6,425 | 24,040 | 18,339 |
| More Personal Computing | **** | 4,899 | 4,594 | 16,356 | 14,566 |
| Total | **** | 20,364 | 17,048 | 62,849 | $50,821 |
All values are in US Dollars.