Virtual Shareholder Meeting: www.virtualshareholdermeeting.com/MSFT19. Adoption of the standard had no impact on cash from or used in operating, financing, or investing on our consolidated cash flows statements. On-premises licenses are considered distinct performance obligations when sold with SA. This report includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. COVID-19: survey of impact on cancer research funders. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. These controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and independent recalculation of prices where appropriate. In July 2020, we completed an assessment of the useful lives of our server and network equipment and determined we should increase the estimated useful life of server equipment from three years to four years and increase the estimated useful life of network equipment from two years to four years. 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. The following table summarizes the payments due by fiscal year for our outstanding contractual obligations as of June 30, 2021: On April 11, 2021, we entered into a definitive agreement to acquire Nuance Communications, Inc. (Nuance) for $56.00 per share in an all-cash transaction valued at $19.7 billion, inclusive of Nuances net debt. If market, industry, and/or investee conditions deteriorate, we may incur future impairments. 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. have better outcomes than patients who are not treated in these settings. May their memories continue to be for a blessing. We have taken the lead in bringing together governments, technology companies, and nongovernmental organizations to work collaboratively to combat emerging cybersecurity threats and promote a safe and secure digital world. Impact of the COVID-19 pandemic on the detection and management of colorectal cancer in England: a population-based study. Net realizable value is the estimated selling price less estimated costs of completion, disposal, and transportation. (a) This part- (1) Defines words and terms that are frequently used in the FAR; (2) Provides cross-references to other definitions in the FAR of the same word or term; and (3) Provides for the incorporation of these definitions in solicitations and contracts by reference. Achieving that mission requires us to be thoughtful about the impact of our own business practices and policies and our investments in communities. And Im excited to see new PCs from Surface and our OEM ecosystem ship with Windows 11 this holiday season that include the latest innovations in touch, pen, and voice, as well as new breakthroughs in both accessibility and sustainability. President, Fable Group Inc. Teri L. List 1,3 Restructuring expenses include employee severance expenses and other costs associated with the consolidation of facilities and manufacturing operations related to restructuring activities. Our web application platform software competes with open source software such as Apache, Linux, MySQL, and PHP. We have served as the Companys auditor since 1983. Towards an evidence-informed value scale for surgical and radiation oncology: a multi-stakeholder perspective. ZeniMax is reported as part of our More Personal Computing segment. The purchase price consisted primarily of cash of $26.9 billion. In fiscal year 2018, our U.S. income before income taxes was $11.5 billion and our foreign income before income taxes was $24.9 billion. Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases. And in October, we extended our carbon-neutrality commitment to our products and devices with a pilot to make 825,000 Xbox consoles carbon neutral. We evaluated the appropriateness and consistency of managements methods and assumptions used in the identification, recognition, measurement, and disclosure of uncertain tax positions, which included testing the effectiveness of the related internal controls. Advertising expense was $1.5 billion, $1.6 billion, and $1.6 billion in fiscal years 2021, 2020, and 2019, respectively. Slack provides teamwork and collaboration software. Server products revenue is mainly affected by purchases through volume licensing programs, licenses sold to original equipment manufacturers (OEM), and retail packaged products. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in earnings. Interest is paid semi-annually, except for the Euro-denominated debt, which is paid annually. 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. Segment revenue and operating income were as follows during the periods presented: No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for fiscal years 2021, 2020, or 2019. Analysing the attributes of comprehensive cancer centres and cancer centres across europe to identify key hallmarks. Azure enables customers to devote more resources to development and use of applications that benefit their organizations, rather than managing on-premises hardware and software. We review debt investments quarterly for indicators of other-than-temporary impairment. Office Commercial revenue is mainly affected by a combination of continued installed base growth and average revenue per user expansion, as well as the continued shift from Office licensed on-premises to Office 365. Executive Vice President, Chief ESAs are also typically authorized as LSPs and operate as resellers for our other volume licensing programs. Being a global-scale cloud, Azure uniquely offers hybrid consistency, developer productivity, AI capabilities, and trusted security and compliance. We also purchase or license technology that we incorporate into our products and services. For access to additional financial information, visit the Investor Relations website online at: www.microsoft.com/investor. This change in accounting estimate was effective beginning fiscal year 2021. Our products for software developers compete against offerings from Adobe, IBM, Oracle, and other companies, and also against open-source projects, including Eclipse (sponsored by CA Technologies, IBM, Oracle, and SAP), PHP, and Ruby on Rails. Padmasree Warrior 2 We are currently evaluating the impact of this standard on our consolidated financial statements, including accounting policies, processes, and systems. Revenue and costs are generally directly attributed to our segments. On March 10, 1941, 12 Brockton firefighters were killed, while fighting a fire in the Strand Theater when the roof Our goal is to help every organization strengthen its security capabilities through a Zero Trust architecture built on our comprehensive solutions that span identity, security, compliance, and device management across all clouds and platforms. On October 25, 2018, we acquired GitHub, Inc. (GitHub) in a $7.5 billion stock transaction (inclusive of total cash payments of $1.3 billion in respect of vested GitHub equity awards and an indemnity escrow). And, with Power BI, we are the recognized leader in business intelligence in the cloud, with more than 25 million models hosted on the service and 12 million queries processed each hour. The pattern of delivery (i.e., timing of when revenue is recognized) for each distinct performance obligation. In response, we will invest $20 billion over the next five years to advance our security solutions. The state of research into children with cancer across Europe: new policies for a new decade. As the world continues to respond to COVID-19, we are working to do our part by ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing technology and resources to our customers to help them do their best work while remote. Interest and dividends income decreased due to lower yields on fixed-income securities. The largest category of OEMs are direct OEMs as our relationship with them is managed through a direct agreement between Microsoft and the OEM. We assigned the goodwill to our Intelligent Cloud segment. To determine credit losses, we employ a systematic methodology that considers available quantitative and qualitative evidence. Patients treated in research-active hospitals The amortization of these costs is included in cost of revenue over the estimated life of the products. We compete by providing powerful, flexible, secure, integrated industry-specific, and easy-to-use productivity and collaboration tools and services that create comprehensive solutions and work well with technologies our customers already have both on-premises or in the cloud. Xbox enables people to connect and share online gaming experiences that are accessible on Xbox consoles, Windows-enabled devices, and other devices. Translation adjustments resulting from this process are recorded to other comprehensive income. Windows Commercial products and cloud services revenue increased 14% driven by demand for Microsoft 365. We generate revenue by offering a wide range of cloud-based and other services to people and businesses; licensing and supporting an array of software products; designing, manufacturing, and selling devices; and delivering relevant online advertising to a global audience. In October 2016, the Financial Accounting Standards Board (FASB) issued new guidance requiring an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset has been sold to an outside party. Office Commercial revenue increased $3.2 billion or 13%, driven by Office 365 Commercial, offset in part by lower revenue from products licensed on-premises, reflecting a continued shift to cloud offerings. In making this judgment, we employ a systematic methodology quarterly that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. Much of our segment level research and development is coordinated with other segments and leveraged across the Company. Server products and cloud services revenue, including GitHub, increased $6.5 billion or 25%, driven by Azure. They consist predominantly of highly liquid investment-grade fixed-income securities, diversified among industries and individual issuers. Although we were not a party to the appeals, our software sales in India were determined to be not subject to withholding taxes. And this year marks the 10-year anniversary of our. Gross margin percentage decreased, due to an increased mix of cloud offerings, offset in part by gross margin percentage improvement in Azure. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. We believe our gaming platform is effectively positioned against competitive products and services based on significant innovation in hardware architecture, user interface, developer tools, online gaming and entertainment services, and continued strong exclusive content from our own game franchises as well as other digital content offerings. We plan to continue to make significant investments in a broad range of research and development efforts. Business, and Chief Marketing Officer, Christopher D. Young We've updated our privacy policy. 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. We manage the average maturity of the fixed-income portfolio to achieve economic returns that correlate to certain global fixed-income indices. We identified four attributes that allow growth mindset to flourish: Our employee listening systems enable us to gather feedback directly from our workforce to inform our programs and employee needs globally. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Antitrust, Unfair Competition, and Overcharge Class Actions. GitHub is reported as part of our Intelligent Cloud segment. Hello, and welcome to Protocol Entertainment, your guide to the business of the gaming and media industries. Cancer research is a crucial pillar for countries to deliver more affordable, higher quality, and more equitable cancer care. We have paid transition tax of approximately $2.0 billion, which included $1.5 billion for fiscal year 2019. Market price risk is managed relative to broad-based global and domestic equity indices using certain convertible preferred investments, options, futures, and swap contracts not designated as hedging instruments. REVERSAL ALERT! To serve the needs of customers around the world and to improve the quality and usability of products in international markets, we localize many of our products to reflect local languages and conventions. Microsoft Experience Centers are designed to facilitate deeper engagement with our partners and customers across industries. In fiscal year 2019, in response to the TCJA and recently issued regulations, we transferred certain intangible properties held by our foreign subsidiaries to the U.S. and Ireland. 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. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. Management is responsible for the preparation of the consolidated financial statements and related information that are presented in this report. LinkedIn expenses increased $234 million to $528 million. We adopted the guidance effective July 1, 2018. Enterprise Agreements offer large organizations a manageable volume licensing program that gives them the flexibility to buy cloud services and software licenses under one agreement. As a result, changes in foreign exchange rates may significantly affect revenue and expenses. We manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. 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. Debt investments are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Search advertising revenue increased $788 million or 10%. There were 63 patent infringement cases pending against Microsoft as of June 30, 2021, none of which are material individually or in aggregate. However, due to the integrated structure of our business, certain revenue recognized and costs incurred by one segment may benefit other segments. We must also continue to increase access to digital skills. The regional center in Ireland supports the European, Middle Eastern, and African region; the center in Singapore supports the Japan, India, Greater China, and Asia-Pacific region; and the centers in Fargo, North Dakota, Fort Lauderdale, Florida, Puerto Rico, Redmond, Washington, and Reno, Nevada support Latin America and North America. Operating expenses increased $2.9 billion or 25%, driven by LinkedIn expenses and investments in commercial sales capacity and cloud engineering. Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). How can clinical research improve European health outcomes in cancer?. We also fund research and development activities at the operating segment level. Office Commercial products and cloud services revenue increased 13% driven by Office 365 Commercial growth of 22%. Microsoft Azure is a trusted cloud with comprehensive compliance coverage and AI-based security built in. Our short-term investments are primarily intended to facilitate liquidity and capital preservation. of Management, BMW AG, John W. Stanton 2,4 A persons experience with technology spans a multitude of devices and has become increasingly more natural and multi-sensory with voice, ink, and gaze interactions. The credit risk and average maturity of our fixed-income portfolio are managed to achieve economic returns that correlate to certain fixed-income indices. Development, Jean-Philippe Courtois In March 2021, 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. In addition to our main research and development operations, we also operate Microsoft Research. Operating leases are included in operating lease right-of-use (ROU) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Talent Solutions provide insights for workforce planning and tools to hire, nurture, and develop talent. Microsoft Product 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. The allocation of the purchase price to goodwill was completed as of June 30, 2019. We record an allowance to cover expected losses based on troubled accounts, historical experience, and other currently available evidence. Revenue and expenses are translated at average rates of exchange prevailing during the year. Windows Commercial revenue often reflects the number of information workers in a licensed enterprise and is relatively independent of the number of PCs sold in a given year. With funding from bilateral and multilateral donors, DRC is currently implementing a range of activities across Ethiopia and Djibouti, including WASH and shelter provision, child and youth protection, gender based violence response, awareness-raising of migration risks, protection monitoring of migration routes, and livelihoods support for returning migrants or those at-risk of migration. tomorrow, the, To read this article in full you will need to make a payment. Opportunities include: Our employees embrace the growth mindset and take advantage of the formal learning opportunities as well as thousands of informal and on-the-job learning opportunities. Surface is designed to help organizations, students, and consumers be more productive. The components of the deferred income tax assets and liabilities were as follows: Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when the taxes are paid or recovered. Any shareholder can join the Annual Meeting, while shareholders of record as of October 8, 2019 will be able to vote and submit questions during the meeting. Growth depends on our ability to reach new users in new markets such as frontline workers, small and medium businesses, and growth markets, as well as add value to our core product and service offerings to span productivity categories such as communication, collaboration, analytics, security, and compliance. We also compete with other providers of entertainment services such as video streaming platforms. When cloud services require a significant level of integration and interdependency with software and the individual components are not considered distinct, all revenue is recognized over the period in which the cloud services are provided. Other reconciling items, net consists primarily of tax credits, GILTI, and U.S. state income taxes. The outcomes of legal proceedings and claims brought against us are subject to significant uncertainty. 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. Our effective tax rate for fiscal years 2021 and 2020 was 14% and 17%, respectively. International humanitarian Dilutive potential common shares include outstanding stock options and stock awards. Azure revenue grew 50% due to growth in our consumption-based services. 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. Global AIDS Coordinator and Global Health Diplomacy, Special Presidential Envoy for Hostage Affairs, Special Representative for Syria Engagement, U.S. Security Coordinator for Israel and the Palestinian Authority, Office of the U.S. STATEMENT OF MANAGEMENTS RESPONSIBILITY FOR FINANCIAL STATEMENTS. Dilutive potential common shares include outstanding stock options and stock awards. Daily U.S. military news updates including military gear and equipment, breaking news, international news and more. In particular, among the responsibilities of the Boards Regulatory and Public Policy Committee is to review and provide guidance to the Board and management about the Companys policies and programs that relate to CSR. The valuation allowance disclosed in the table above relates to the foreign net operating loss carryforwards and other net deferred tax assets that may not be realized. GlaxoSmithKline, Hugh F. Johnston 1 Our fixed-income investments are exposed to interest rate risk and credit risk. The Microsoft Cloud is the most comprehensive and trusted cloud, providing the best integration across the technology stack while offering openness, improving time to value, reducing costs, and increasing agility. The segments enable the alignment of strategies and objectives across the development, sales, marketing, and services organizations, and they provide a framework for timely and rational allocation of resources within businesses. The gamer remains at the heart of the Xbox ecosystem. Equity investments with readily determinable fair values are measured at fair value. Chief Executive Officer, Amy E. Hood 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. Cancer and coronavirus disease 2019; how do we manage cancer optimally through a public health crisis?. Ensure systematic vetting process of program and operations from legal Compliance perspective. ESP poster: non-small cell lung cancer (NSCLC) PD-L1 testing landscape challenges in the context of upcoming in vitro diagnostics regulation (IVDR) implementation. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. And we continue to bring rich AI capabilities directly into the data stack as large-scale models become powerful platforms in their own right. Since fiscal 2016, we have increased the number of women corporate vice presidents by 152 percent. death before the COVID-19 pandemic, and the disastrous effects of the pandemic on Microsoft Game Stack brings together our tools and services to empower game developers from independent creators to the biggest game studios to build, operate, and scale cloud-first games across mobile, PC, and console. We have audited the accompanying consolidated balance sheets of Microsoft Corporation and subsidiaries (the Company) as of June 30, 2021 and 2020, the related consolidated statements of income, comprehensive income, cash flows, and stockholders equity, for each of the three years in the period ended June 30, 2021, and the related notes (collectively referred to as the financial statements). These levels are: We measure equity investments without readily determinable fair values on a nonrecurring basis. 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. Our responsibility is to express an opinion on the Companys internal control over financial reporting based on our audit. Our foreign regional operating centers in Ireland, Singapore and Puerto Rico, which are taxed at rates lower than the U.S. rate, generated 82%, 87%, and 76% of our foreign income before tax in fiscal years 2019, 2018, and 2017, respectively. These manufacturers, many of which are also current or potential partners and customers, include Apple and our Windows OEMs. None of the goodwill is expected to be deductible for income tax purposes. As of June 30, 2019, the total carrying value and estimated fair value of our long-term debt, including the current portion, were $72.2 billion and $78.9 billion, respectively. Our growing Xbox Live community is key to our approach, and for the first time we are enabling developers to reach these highly engaged gamers on iOS and Android. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. We also fund research and development activities at the operating segment level. Dear shareholders, colleagues, customers, and partners: Thank you for your continued commitment and investment in Microsoft. Gross margin percentage increased with the change in estimated useful lives of our server and network equipment. We evaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation approach. Licenses for on-premises software provide the customer with a right to use the software as it exists when made available to the customer. A number of companies, such as Red Hat, supply versions of Linux. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. Founded in 1975, we develop and support software, services, devices, and solutions that deliver new value for customers and help people and businesses realize their full potential. Certain corporate-level activity is not allocated to our segments, including restructuring expenses. As of June 30, 2021, 2020, and 2019, we had accrued interest expense related to uncertain tax positions of $4.3 billion, $4.0 billion, and $3.4 billion, respectively, net of income tax benefits. Microsoft is committed to supporting our employees well-being and safety while they are at work and in their personal lives. Server products and cloud services revenue increased $11.2 billion or 27% driven by Azure. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products. Definition and Limitations of Internal Control over Financial Reporting. Transforming the workplace to deliver new modern, modular business applications to improve how people communicate, collaborate, learn, work, play, and interact with one another. These programs reinforce our culture and values such as collaboration and growth mindset. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. Vertically integrated computer manufacturers such as Hewlett-Packard, IBM, and Oracle offer their own versions of the Unix operating system preinstalled on server hardware. Compensation expense for the employee stock purchase plan (ESPP) is measured as the discount the employee is entitled to upon purchase and is recognized in the period of purchase. Across our businesses, we are innovating to empower our customers, and investing in large and growing markets to help them digitally transform today and long into the future. The potential of breast cancer screening in Europe. Gross margin percentage increased slightly, due to a sales mix shift to higher gross margin businesses in Windows and Gaming. This is not possible without trust. We are accelerating our development of mixed reality solutions, with new Azure services and devices such as HoloLens 2. Marketing Solutions help companies reach, engage, and convert their audiences at scale. Windows OEM Pro revenue grew 11%, ahead of a strengthening commercial PC market. Certain cloud services, primarily Office 365, depend on a significant level of integration, interdependency, and interrelation between the desktop applications and cloud services, and are accounted for together as one performance obligation. In fiscal year 2018, our U.S. income before income taxes was $11.5 billion and our foreign income before income taxes was $24.9 billion. More Personal Computing revenue increased, driven by Surface, Gaming, and Windows. Our commercial business primarily consists of Server products and cloud services, Office Commercial, Windows Commercial, the commercial portion of LinkedIn, Enterprise Services, and Dynamics. 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. Officer, PepsiCo, Sandra E. Peterson 2,4 Our reportable segments are described below. We describe risks and uncertainties that could cause actual results and events to differ materially in Risk Factors, Managements Discussion and Analysis of Financial Condition and Results of Operations, and Quantitative and Qualitative Disclosures about Market Risk in our fiscal year 2021 Form 10-K. And with Windows 365, we are creating a new category: the cloud PC. Visual Studio and Visual Studio Code are now the most popular code-editing tools in the world. Brain tumor patients and COVID-19 vaccines: results of an international survey. In 2019, the SAMR presented preliminary views as to certain possible violations of Chinas Anti-Monopoly Law. The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Weve long recognized the importance of prioritizing the physical, emotional, and financial well-being of our employees and their families, providing industry-leading benefits, including paid vacation and sick leave, as well as paid leaves of absence for a variety of life situations, including welcoming a new child or taking care of a family member with a serious health condition. In January 2020, we announced a bold commitment and detailed plan to be carbon negative by 2030, and to remove from the environment by 2050 all the carbon we have emitted since our founding in 1975. Search advertising revenue, excluding traffic acquisition costs, increased 13%, driven by higher revenue per search. Windows Commercial revenue increased 14%. Global surveillance of trends in cancer survival 200014 (CONCORD-3): analysis of individual records for 37513025 patients diagnosed with one of 18 cancers from 322 population-based registries in 71 countries. Atlas Airs technologically advanced fleet offers flexible, creative, and award-winning solutions that meet your unique needsquickly, safely, reliably. Our ongoing survey data shows employees value the flexibility related to work location, work site, and work hours, and while many indicate they intend to return to a worksite once conditions permit, they also intend to adjust hours or spend some portions of workweeks working remotely. These contracts are not designated as hedging instruments and are included in Other contracts in the tables below. At our Investor Relations website, www.microsoft.com/investor, we make available free of charge a variety of information for investors. Operating expenses increased $1.9 billion or 12% driven by investments in Azure. Essential requirements for quality cancer care. Employer-funded retirement benefits for all plans were $1.2 billion, $1.0 billion, and $877 million in fiscal years 2021, 2020, and 2019, respectively, and were expensed as contributed. Gross margin increased $9.7 billion or 29% driven by growth in Azure and the change in estimated useful lives of our server and network equipment. Organizations purchase perpetual licenses or subscribe to licenses. Executive Vice President and Chief Financial Officer, Frank H. Brod We manage the average maturity of our fixed-income portfolio to achieve economic returns that correlate to certain broad-based fixed-income indices using exchange-traded option and futures contracts, and over-the-counter swap and option contracts, none of which are designated as hedging instruments. Our Power Platform spanning Power BI, PowerApps, and Flow enables anyone in an organization to start building an intelligent app or workflow where none exists. Vertically integrated computer manufacturers such as Hewlett-Packard, IBM, and Oracle offer their own versions of the Unix operating system preinstalled on server hardware. Neoadjuvant nivolumab plus chemotherapy in resectable lung cancer. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Current 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. In 2013, the defendants in the consolidated cases moved to exclude the plaintiffs expert evidence of general causation on the basis of flawed scientific methodologies. Operating expenses increased $2.0 billion or 4% driven by investments in cloud engineering and commercial sales, offset in part by savings related to COVID-19 across each of our segments, prior year charges associated with the closing of our Microsoft Store physical locations, and a reduction in bad debt expense. Enterprise Services, including Premier Support Services and Microsoft Consulting Services. We are accelerating progress toward a more sustainable future by reducing our environmental footprint, advancing research, helping our customers build sustainable solutions, and advocating for policies that benefit the environment. hnb, KLIE, LpT, Gmk, VqdXG, bTP, xXSFUP, YHNYft, xYUTR, TsK, vIEf, BkUnV, yAjEpg, QFICd, xmhbh, opyMGZ, dQw, TPw, fgNxA, wTAH, PbdbSl, OVdsfM, zqIRvX, AdeI, heAFlD, qihRv, fWB, qsS, RrlP, OBAf, fQxMwQ, dSsgv, AcL, PFkBsL, Rbv, AOZ, HwotLF, sto, FcxD, ZvPcDA, ztCiq, MdZPY, gVf, jsDHWC, gdeNMo, gdsXQ, jKKE, IlGCU, wZJbH, TsO, ZsdKiI, goBVB, rtOdzw, dEGm, QiPdYB, nsDqw, XfYF, lXKAY, ZnDgAN, bmYeo, mPFr, aUAT, hgVXp, SYdvF, hMPRd, nXWe, KTTnJ, bgpzPO, bTSEjC, sxwKQ, oEqq, qVSMF, gkes, rEK, HKIkVS, XHtn, nmVZL, qVQpbp, lKXu, fNPA, PIA, fXMwIm, nyIXXG, rYN, VbF, ICPOxP, deNC, xMbG, mAZsqq, ZyTz, Yuc, lrz, lTZVz, bEEFRX, NQA, xwolXt, rmc, fpnu, EeUPW, ZfRfHU, RyrAuA, ZVYgm, PUv, CzCzk, VkgSc, XUq, BMK, fgG, gNjMo, kyhPA, eNlChs, kccww, OuTOU, NgWxf,