| |
Microsoft Corporation
Consolidated Statement of EarningsYear Ended June 30, 1998
(In millions)
(unaudited) |
|
|
|
|
|
Revenue |
|
$20,555 |
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
1,699 |
|
|
|
|
|
|
|
|
|
Research and development |
|
3,691 |
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
4,842 |
|
|
|
|
|
|
|
|
|
General and administrative |
|
614 |
|
|
|
|
|
|
|
|
|
Other expenses |
|
326 |
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
11,172 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
9,383 |
|
|
|
|
Interest income |
|
998 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
10,381 |
|
|
|
|
|
|
|
Provision for income taxes |
|
1,524 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
8,857 |
|
|
|
|
Preferred stock dividends |
|
40 |
|
|
|
|
|
|
|
|
|
|
Net income available for common shareholders |
|
$ 8,817 |
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation to results presented in accompanying
financial statements: |
|
|
|
|
|
|
|
|
Net income - Canadian GAAP |
|
$ 8,817 |
|
|
|
|
|
|
|
Acquired in-process technology |
|
(280 |
) |
|
|
|
|
|
|
Tax benefit of stock options |
|
(2,204 |
) |
|
|
|
|
|
|
|
|
|
Net income - US GAAP |
|
$ 6,333 |
|
|
|
|
|
|
This unaudited Consolidated Statement of
Earnings has been converted from Microsoft's audited consolidated income statement into
Canadian currency and adjusted for accounting principles and format that are generally
accepted in Canada. This presentation differs in certain respects from generally accepted
accounting principles in the United States that are used in Microsoft's primary financial
statements and its filings with the United States Securities and Exchange Commission. The
Microsoft 1998 Annual Report to Shareholders and the Form 10-K are available on this Web
site or copies may be obtained by writing to the Company.
Translated at the average
exchange rate for the year (C$1 = US $0.7046). |
