partners life annual report 2019

Posted On 25 Oct 2020

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During the second quarter of fiscal year 2019, we recorded additional tax expense of $157 million, which related to completing our provisional accounting for GILTI deferred taxes pursuant to Securities and Exchange Commission Staff Accounting Bulletin No.

Server products licensed on-premises revenue increased 5%, mainly due to a higher mix of premium licenses for Windows Server and Microsoft SQL Server.
Our reportable segments are described below. We are enabling our customers to digitize not only their business processes but to bridge the physical and digital worlds with our investments in mixed-reality cloud. 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. Revenue related to cloud services provided on a consumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such resources. These controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and independent recalculation of prices where appropriate. The amortization of these costs is included in cost of revenue over the estimated life of the products. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. We continue to develop complete, intelligent solutions for our customers that empower users to be creative and work together while safeguarding businesses and simplifying IT management.
We recorded a net cumulative-effect adjustment that resulted in an increase in retained earnings of $557 million, which reversed the previous deferral of income tax consequences and recorded new deferred tax assets from intra-entity transfers involving assets other than inventory, partially offset by a U.S. deferred tax liability related to global intangible low-taxed income (âGILTIâ).

Across each, our commitment goes beyond words to real actions, providing tools and frameworks for our customers and working collaboratively with the public sector to drive policy change. Message from the Chairman and the Co-CEOs.

If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly. 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. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entityâs financial statements or tax returns. Effective August 31, 2018, we terminated our credit facilities, which served as back-up for our commercial paper program.

We measure the fair value of PSUs using a Monte Carlo valuation model. Marriott International, Inc. Reid G. Hoffman

In the past, to hedge our price risk, we also used and designated equity derivatives as hedging instruments, including puts, calls, swaps, and forwards. By the end of this year, we will achieve our target of powering our datacenters with 60 percent renewable energy and will aim to reach 70 percent renewable energy within the next four years. The standard will be adopted upon the effective date for us beginning July 1, 2020. We are accelerating our development of mixed reality solutions, with new Azure services and devices such as HoloLens 2. We distribute our retail packaged products primarily through independent non-exclusive distributors, authorized replicators, resellers, and retail outlets. Of this total amount, USD Our approach is to enable gamers to play the games they want, with the people they want, on the devices they want. Date: Wednesday, December 4, 2018 Partners in this program can easily package their own products and services to directly provision, manage, and support their customer subscriptions. This year, we introduced Dynamics 365 AI, a new class of AI application built for an era where systems of record and engagement are converted into intelligence.

Development, Jean-Philippe Courtois Derivative instruments are recognized as either assets or liabilities and measured at fair value. The components of our long-term debt, including the current portion, and the associated interest rates were as follows: The notes in the table above are senior unsecured obligations and rank equally with our other senior unsecured debt outstanding. Under the TCJA, the transition tax is payable interest free over eight years, with 8% due in each of the first five years, 15% in year six, 20% in year seven, and 25% in year eight. Business, and Chief Marketing Officer, Margaret L. Johnson Weâve increased the number of African American/Black and Hispanic/Latinx employees in nonretail roles by 54 percent. Productivity and Business Processes revenue increased, driven by LinkedIn and higher revenue from Office. Operating expenses increased $806 million or 6%, driven by investments in LinkedIn and cloud engineering, offset in part by a decrease in marketing. While the Company has settled a portion of the IRS audits, resolution of the remaining matters could have a material impact on the Companyâs financial statements.

The consolidated financial statements include the accounts of Microsoft Corporation and its subsidiaries. Economic Conditions, Challenges, and Risks. Segment revenue and operating income were as follows during the periods presented: Corporate and Other operating loss comprised restructuring expenses. For derivative instruments designated as fair value hedges, gains and losses are recognized in other income (expense), net with offsetting gains and losses on the hedged items. Achieving that mission requires us to be thoughtful about the impact of our own business practices and policies and our investments in communities. Other news and announcements that we may post from time to time that investors might find useful or interesting. I am proud of how we are helping organizations of every size in every industry innovate and thrive using our platforms and tools. We provide indemnifications of varying scope and size to certain customers against claims of intellectual property infringement made by third parties arising from the use of our products and certain other matters. Sales and marketing expenses increased $2.0 billion or 13%, primarily due to LinkedIn expenses and investments in commercial sales capacity, offset in part by a decrease in Windows marketing expenses. The aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows: In June 2017, management approved a sales and marketing restructuring plan. Corporate and Other includes corporate-level activity not specifically allocated to a segment, including restructuring expenses. There were no changes in our internal control over financial reporting during the quarter ended June 30, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. PDF. Our strategy requires continued investment in datacenters and other hybrid and edge infrastructure to support our services. No customer wants to be dependent on a provider that sells them technology on one end and competes with them on the other. Recent Accounting Guidance Not Yet Adopted, Financial Instruments â Targeted Improvements to Accounting for Hedging Activities. We use different programs designed to provide flexibility for organizations of various sizes. A companyâs internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.

We market and distribute our products and services through the following channels: OEMs, direct, and distributors and resellers. Today, every company is a technology company, and every organization will increasingly need to build its own proprietary technology solutions to compete and grow. Founder, President and Chief Executive All three have been certified on behalf of Canadian indirect purchasers who acquired licenses for Microsoft operating system software and/or productivity application software between 1998 and 2010. Judgment is required to determine the SSP for each distinct performance obligation.

LinkedIn revenue increased $3.0 billion to $5.3 billion. We also deliver relevant online advertising to a global audience. Product Revenue and Service and Other Revenue. The Independent Software Vendor Royalty program enables partners to integrate Microsoft products into other applications and then license the unified business solution to their end users. Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis (May 1 for us) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Significant judgment is exercised by the Company in determining revenue recognition for these customer agreements, and includes the following: Given these factors, the related audit effort in evaluating managementâs judgments in determining revenue recognition for these customer agreements was extensive and required a high degree of auditor judgment. Virtual Shareholder Meeting: www.virtualshareholdermeeting.com/MSFT19. Unearned revenue is generally invoiced annually at the beginning of each contract period for multi-year agreements and recognized ratably over the coverage period. We have audited the accompanying consolidated balance sheets of Microsoft Corporation and subsidiaries (the âCompanyâ) as of June 30, 2019 and 2018, the related consolidated statements of income, comprehensive income, stockholdersâ equity, and cash flows, for each of the three years in the period ended June 30, 2019, and the related notes (collectively referred to as the âfinancial statementsâ).

And this year marks the 10-year anniversary of our. business partners, fellow shareholders and colleagues – and thank you for your continued trust in