# migrations

dir: embeddings_queue
filename: 00001-embeddings.sqlite.sql
hash: d3755dfd232be8e8301f4d7fcfb3a486
sql:
CREATE TABLE embeddings_queue (
    seq_id INTEGER PRIMARY KEY,
    created_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
    operation INTEGER NOT NULL,
    topic TEXT NOT NULL,
    id TEXT NOT NULL,
    vector BLOB,
    encoding TEXT,
    metadata TEXT
);


dir: sysdb
filename: 00001-collections.sqlite.sql
hash: 38352d725ad1c16074fac420b22b4633
sql:
CREATE TABLE collections (
    id TEXT PRIMARY KEY,
    name TEXT NOT NULL,
    topic TEXT NOT NULL,
    UNIQUE (name)
);

CREATE TABLE collection_metadata (
    collection_id TEXT REFERENCES collections(id) ON DELETE CASCADE,
    key TEXT NOT NULL,
    str_value TEXT,
    int_value INTEGER,
    float_value REAL,
    PRIMARY KEY (collection_id, key)
);


dir: sysdb
filename: 00002-segments.sqlite.sql
hash: 2913cb6a503055a95f625448037e8912
sql:
CREATE TABLE segments (
    id TEXT PRIMARY KEY,
    type TEXT NOT NULL,
    scope TEXT NOT NULL,
    topic TEXT,
    collection TEXT REFERENCES collection(id)
);

CREATE TABLE segment_metadata (
    segment_id TEXT  REFERENCES segments(id) ON DELETE CASCADE,
    key TEXT NOT NULL,
    str_value TEXT,
    int_value INTEGER,
    float_value REAL,
    PRIMARY KEY (segment_id, key)
);


dir: sysdb
filename: 00004-tenants-databases.sqlite.sql
hash: 048867ce8fcdefe4023c7110e4433591
sql:
CREATE TABLE IF NOT EXISTS tenants (
    id TEXT PRIMARY KEY,
    UNIQUE (id)
);

CREATE TABLE IF NOT EXISTS databases (
    id TEXT PRIMARY KEY, -- unique globally
    name TEXT NOT NULL, -- unique per tenant
    tenant_id TEXT NOT NULL REFERENCES tenants(id) ON DELETE CASCADE,
    UNIQUE (tenant_id, name) -- Ensure that a tenant has only one database with a given name
);

CREATE TABLE IF NOT EXISTS collections_tmp (
    id TEXT PRIMARY KEY, -- unique globally
    name TEXT NOT NULL, -- unique per database
    topic TEXT NOT NULL,
    dimension INTEGER,
    database_id TEXT NOT NULL REFERENCES databases(id) ON DELETE CASCADE,
    UNIQUE (name, database_id)
);

-- Create default tenant and database
INSERT OR REPLACE INTO tenants (id) VALUES ('default_tenant'); -- The default tenant id is 'default_tenant' others are UUIDs
INSERT OR REPLACE INTO databases (id, name, tenant_id) VALUES ('00000000-0000-0000-0000-000000000000', 'default_database', 'default_tenant');

INSERT OR REPLACE INTO collections_tmp (id, name, topic, dimension, database_id)
    SELECT id, name, topic, dimension, '00000000-0000-0000-0000-000000000000' FROM collections;
DROP TABLE collections;
ALTER TABLE collections_tmp RENAME TO collections;


dir: metadb
filename: 00001-embedding-metadata.sqlite.sql
hash: 2b4cf52c4bb2676e21d6860a4409f856
sql:
CREATE TABLE embeddings (
    id INTEGER PRIMARY KEY,
    segment_id TEXT NOT NULL,
    embedding_id TEXT NOT NULL,
    seq_id BLOB NOT NULL,
    created_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
    UNIQUE (segment_id, embedding_id)
);

CREATE TABLE embedding_metadata (
    id INTEGER REFERENCES embeddings(id),
    key TEXT NOT NULL,
    string_value TEXT,
    int_value INTEGER,
    float_value REAL,
    PRIMARY KEY (id, key)
);

CREATE TABLE max_seq_id (
    segment_id TEXT PRIMARY KEY,
    seq_id BLOB NOT NULL
);

CREATE VIRTUAL TABLE embedding_fulltext USING fts5(id, string_value);


dir: metadb
filename: 00002-embedding-metadata.sqlite.sql
hash: 12a570f7121b3a8ce750a2a7c36da20f
sql:
-- SQLite does not support adding check with alter table, as a result, adding a check
-- involve creating a new table and copying the data over. It is over kill with adding
-- a boolean type column. The application write to the table needs to ensure the data
-- integrity.
ALTER TABLE embedding_metadata ADD COLUMN bool_value INTEGER


dir: metadb
filename: 00003-full-text-tokenize.sqlite.sql
hash: f97ad6334aeaa8f419f01110b648b97a
sql:
CREATE VIRTUAL TABLE embedding_fulltext_search USING fts5(string_value, tokenize='trigram');
INSERT INTO embedding_fulltext_search (rowid, string_value) SELECT rowid, string_value FROM embedding_metadata;
DROP TABLE embedding_fulltext;


# embeddings_queue

created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971776-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 1, "chroma:document": "1 Dear shareholders, colleagues, customers, and partners,  \nWe are living through a time of historic challenge and opportunity. As I write this, the world faces ongoing economic, social , \nand geopolitical volatility. At the same time, we have entered a new age of AI that will fundamentally transform productivity  \nfor every individual, organization, and industry on earth, and help us address some of our most pressing challenges.  \nThis next generation of AI will reshape every software category and every business, including our own. Forty -eight years \nafter its founding, Microsoft remains a consequential company because time and time again \u2014from PC/Server, to \nWeb/Internet, to Cloud/Mobile \u2014we have adapted to technological paradigm shifts. Today, we are doing so once again, as \nwe lead this new era.  \nAmid this transformation, our mission to empower every person and every organization on the planet to achieve \nmore  remains constant. As a company, we believe we can be the democratizing force for this new generation of technology \nand the opportunity it will help unlock for every co untry, community, and individual, while mitigating its risks.  \nHere are just a few examples of how we are already doing this:  \n\u2022 Leading electronic health records vendor Epic is addressing some of the biggest challenges facing the \nhealthcare industry today \u2014including physician burnout \u2014by deploying a wide range of copilot solutions built on \nAzure OpenAI Service and Dragon Ambient eXperience Copilot.  \n\u2022 Mercado Libre is reducing the time its developers spend writing code by more than 50  percent with GitHub \nCopilot, as the company works to democratize e -commerce across Latin America.  \n\u2022 Mercedes -Benz is making its in -car voice assistant more intuitive for hundreds of thousands of drivers using \nChatGPT via the Azure OpenAI Service.  \n\u2022 Lumen Technologies is helpin g its employees be more productive, enabling them to focus on higher value -\nadded activities, by deploying Microsoft 365 Copilot.  \n\u2022 Nonprofit The Contingent is matching foster families with children in need using Dynamics 365, Power BI, and \nAzure, with an eye on using AI to amplify its work across the US.  \n\u2022 And, Taiwan\u2019s Ministry of Education has built an online platform to help elementary and high school students \nlearn English using Azure AI."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59719a6-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 1, "chroma:document": "learn English using Azure AI.  \nTo build on this progress, we remain convicted on three things: First, we will maintain our lead as the top commercial cloud \nwhile innovating in consumer categories, from gaming to professional social networks. Second, because we know that \nmaximum enterpri se value gets created during platform shifts like this one, we will invest to accelerate our lead in AI by \ninfusing this technology across every layer of the tech stack. And, finally, we will continue to drive operating leverage, \naligning our cost structur e with our revenue growth.  \nAs we make progress on these priorities, we delivered strong results in fiscal year 2023, including a record $211  billion in \nrevenue and over $88  billion in operating income.  \nA NEW ERA OF AI  \nThere are two breakthroughs coming together to define this new era of AI. The first is the most universal interface: natural \nlanguage. The long arc of computing has, in many ways, been shaped by the pursuit of increasingly intuitive human -\ncomputer interfaces \u2014keyboards, mice, touch screens. We believe we have now arrived at the next big step forward \u2014\nnatural language \u2014and will quickly go beyond, to see, hear, interpret, and make sense of our intent and the world around \nus.  \n  \nThe second is the emergence of a powerful new reasoning engine. For y ears, we\u2019ve digitized daily life, places, and things \nand organized them into databases. But in a world rich with data, what has been most scarce is our ability to reason over \nit. This generation of AI helps us interact with data in powerful new ways \u2014from c ompleting or summarizing text, to detecting \nanomalies and recognizing images \u2014to help us identify patterns and surface insights faster than ever.  \nTogether, these two breakthroughs will unlock massive new opportunity. And, in fact, just last month we announ ced our \nvision for Copilot, an everyday AI companion. We are building Copilot into all our most used products and experiences and \nallowing people to summon its power as a standalone app as well. Just like you boot up an OS to access applications or \nuse a b rowser to visit websites today, our belief is that you will invoke a Copilot to do all those activities and more: to shop,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971a00-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 1, "chroma:document": "to code, to analyze, to learn, to create."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971a3c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 2, "chroma:document": "2 As a company, any time we approach a transition like this, we do so responsibly. We believ e AI should be as empowering \nacross communities as it is powerful, and we\u2019re committed to ensuring it is responsibly built and designed, with safety in \nmind from the outset.  \nOUR OPPORTUNITY  \nEvery customer solution area and every layer of our tech stack w ill be reimagined for the AI era. And that\u2019s exactly what \nwe\u2019ve already begun to do:  \nInfrastructure  \nFour years ago, we first invested in our AI supercomputer, with a goal of building the best cloud for training and inference.  \nToday, it\u2019s being used by ou r partner OpenAI to power its best -in-class foundation models and services, including one of \nthe fastest -growing consumer apps ever \u2014ChatGPT. NVIDIA, as well as leading AI startups like Adept and Inflection, is also \nusing our infrastructure to build its own  breakthrough models.  \nMore broadly, organizations continue to choose our ubiquitous computing fabric \u2014from cloud to edge \u2014to run their mission -\ncritical applications. We continued to see more cloud migrations to Azure this past fiscal year, as it remains ear ly when it \ncomes to the long -term cloud opportunity. And we also continue to lead in hybrid computing with Azure Arc, which now has \n18,000 customers.  \nData and AI  \nEvery AI app starts with data, and having a comprehensive data and analytics platform is more important than ever. Our \nIntelligent Data Platform brings together operational databases, analytics, and governance so organizations can spend \nmore time creating value and less time integrating their data estate. We also introduced Microsoft Fabric this year, which \nunifies compute, storage, and governance with a disruptive business model.  \nWith Azure AI, we are making foundation models available as platforms to our  customers. We offer the best selection of \nindustry -leading frontier and open models. In January, we made the Azure OpenAI Service broadly available, bringing \ntogether advanced models, including ChatGPT and GPT -4, with the enterprise capabilities of Azure.  More than 11,000 \norganizations across industries are already using it for advanced scenarios like content and code generation. Meta chose \nus this summer as its preferred cloud to commercialize its Llama family of models. And, with Azure AI Studio, we prov ide a"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971a6e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 2, "chroma:document": "full lifecycle toolchain customers can use to ground these models on their own data, create prompt workflows, and help \nensure they are deployed and used safely.  \nDigital and app innovation  \nGitHub Copilot is fundamentally transforming developer productivity, helping developers complete coding tasks 55  percent \nfaster. More than 27,000 organizations have chosen GitHub Copilot for Business, and to date more than 1  million people \nhave used GitHub  Copilot to code faster. We also announced our vision for the future of software development with GitHub \nCopilot X, which will bring the power of AI throughout the entire software development lifecycle. All up, GitHub surpassed \n$1 billion in annual recurri ng revenue for the first time this fiscal year.  \nWe\u2019re also applying AI across our low -code/no -code toolchain to help domain experts across an organization automate \nworkflows, create apps and webpages, build virtual agents, or analyze data, using just natu ral language with copilots in \nPower Platform. More than 63,000 organizations have used AI -powered capabilities in Power Platform to date.  \nBusiness applications  \nWe are bringing the next generation of AI to employees across every job function and every lin e of business with Dynamics \n365 Copilot, which works across CRM and ERP systems to reduce burdensome tasks like manual data entry, content \ngeneration, and notetaking. In fact, our own support agents are using Copilot in Dynamics 365 Customer Service to res olve \nmore cases faster and without having to call on peers to help. With our Supply Chain Platform, we\u2019re helping customers \napply AI to predict and mitigate disruptions. And, with our new Microsoft Sales Copilot, sellers can infuse their customer \ninteracti ons with data from CRM systems \u2014including both Salesforce and Dynamics \u2014to close more deals."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971aaa-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 3, "chroma:document": "3 All up, Dynamics surpassed $5  billion in revenue over the past fiscal year, with our customer experience, service, and \nfinance and supply chain businesses each surp assing $1  billion in annual sales.  \nIndustry  \nAcross industries, we are rapidly becoming the partner of choice for any organization looking to generate real value from \nAI. In healthcare, for example, we introduced the world\u2019s first fully automated clinical  documentation application, DAX \nCopilot. The application helps physicians reduce documentation time by half, freeing them to spend more time face to face \nwith patients. And Epic will integrate it directly into its electronic health records system.  \nAnd, in  retail, we introduced new tools to help companies manage their day -to-day operations and digitize their physical \nstores.  \nModern work  \nWe are rapidly evolving Microsoft 365 into an AI -first platform that enables every individual to amplify their creativit y and \nproductivity, with both our established applications like Office and Teams, as well as new apps like Designer, Stream, and \nLoop. Microsoft 365 is designed for today\u2019s digitally connected, distributed workforce.  \nThis year, we also introduced a new pi llar of customer value with Microsoft 365 Copilot, which combines next -generation AI \nwith business data in the Microsoft Graph and Microsoft 365 applications to help people be more productive and unleash \ntheir creativity at work. Just last month, I was exc ited to announce that we will make Microsoft 365 Copilot generally available \nto our commercial customers later this year.  \nWe continue to build momentum in Microsoft Teams across collaboration, chat, meetings, and calls. We introduced a new \nversion of Team s that delivers up to two times faster performance, while using 50  percent less memory. We also introduced \nTeams Premium to meet enterprise demand for AI -powered features like intelligent meeting recaps. All up, Teams usage \nsurpassed 300  million monthly ac tive users this year.  \nWith Microsoft Viva, we have created a new category for employee experience. Copilot in Viva offers leaders a new way to \nbuild high -performance teams by prioritizing both productivity and employee engagement. This year, Viva surpasse d \n35 million monthly active users.  \n  \nSecurity"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971adc-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 3, "chroma:document": "35 million monthly active users.  \n  \nSecurity  \nAs the rate and pace of cyberthreats continue to accelerate, security is a top priority for every organization. Our \ncomprehensive, AI -powered solutions give defenders the advantage. With Security Copilot, we\u2019 re combining large language \nmodels with a domain -specific model informed by our threat intelligence and 65 trillion daily security signals, to transform \nevery aspect of security operations center productivity.  \nAll up, more than 1  million organizations now  count on our comprehensive, AI -powered solutions to protect their digital \nestates, and our security business surpassed $20  billion in annual revenue, as we help protect customers across clouds \nand endpoint platforms.  \nSearch, advertising, and news  \nWe are  reshaping daily search and web habits with our new Bing and Microsoft Edge browser, which brings together search, \nbrowsing, chat, and AI into one unified experience to deliver better search, more complete answers, a new chat experience, \nand the ability to  generate content. We think of these tools as an AI copilot for the web.  \nWe are also bringing these breakthrough capabilities to businesses, with Bing Chat Enterprise, which offers commercial \ndata protection, providing an easy on -ramp for any organization  looking to get the benefit of next -generation AI today.  \nAlthough it\u2019s early in our journey, Bing users engaged in more than 1  billion chats and created more than 750  million images \nover the past year as they apply these new tools to get things done. And Edge has taken share for nine consecutive quarters."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971b0e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 4, "chroma:document": "4 More broadly, we continue to expand our opportunity in advertising. This year, Netflix chose us as its exclusive technology \nand sales partner for its first ad -supported subscription offering, a validatio n of the differentiated value we provide to any \npublisher looking for a flexible partner to build and innovate with them.  \nLinkedIn  \nThe excitement around AI is creating new opportunities across every function \u2014from marketing, sales, service, and finance, \nto software development and security. And LinkedIn is increasingly where people are going to learn, discuss, and uplevel \ntheir skills.  We are using AI to help our members and customers connect to opportunities and tap into the experiences of \nexperts on the platform. In fact, our AI -powered articles are already the fastest -growing traffic driver to the network.  \nAll up, LinkedIn\u2019s revenue  surpassed $15  billion for the first time this fiscal year, a testament to how mission critical the \nplatform has become to help more than 950  million members connect, learn, sell, and get hired.  \nGaming  \nIn gaming, we are rapidly executing on our ambition to be the first choice for people to play great games whenever, \nwherever, and however they want. With Xbox Game Pass, we are redefining how games are distributed, played, and viewed. \nContent is the flywheel behind the service\u2019s growth, and our pipeline has  never been stronger. It was especially energizing \nto release Starfield this fall to broad acclaim, with more than 10  million players in the first month post -launch alone.  \nEarlier this month, we were thrilled to close our acquisition of Activision Blizzar d, and we look forward to sharing more in \nthe coming months about how, together, we will bring the joy of gaming to more people around the world.  \n  \nDevices and creativity  \nFinally, we\u2019re turning Windows into a powerful new AI canvas with Copilot, which ro lled out as part of a Windows 11 update \nlast month. It uniquely incorporates the context and intelligence of the web, your work data, and what you are doing in the \nmoment on your PC to provide better assistance, while keeping your privacy and security at t he forefront. Overall, the \nnumber of devices running Windows 11 more than doubled in the past year. And we are also transforming how Windows is"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971b40-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 4, "chroma:document": "experienced and managed with Azure Virtual Desktop and Windows 365, which together surpassed $1  billion in annua l \nrevenue for the first time.  \nOUR RESPONSIBILITY  \nAs we pursue our opportunity, we are also working to ensure technology helps us solve problems \u2014not create new ones. \nTo do this, we focus on four enduring commitments that are central to our mission and that take on even greater importance \nin this new era. For us, these commitments are more than just words. They\u2019re a guide to help us make decisions across \neverything we do \u2014as we design and develop products, shape business processes and policies, help our customers thrive, \nbuild partnerships, and more \u2014always a sking ourselves critical questions to ensure our actions are aligned with them.  \nHow can we expand opportunity?  \nFirst, we believe access to economic growth and opportunity should reach every person, organization, community, and \ncountry. And although AI ca n serve as a catalyst for opportunity and growth, we must first ensure everyone has access to \nthe technologies, data, and skills they need to benefit.  \nTo achieve this, we are focused on getting technology into the hands of nonprofits, social entrepreneurs , and other civil \nsociety organizations to help them digitally transform, so they can help address some of society\u2019s biggest challenges. This \nyear, we provided nonprofits with over $3.8  billion in discounted and donated technology. Nearly 325,000 nonprofit s used \nour cloud. And to help them tap the potential of AI, we\u2019re building new AI capabilities for fundraising, marketing, and progr am \ndelivery.  \nAI will displace some jobs, but it will also create new ones. That\u2019s why we aim to train and certify 10  millio n people by 2025 \nwith the skills for jobs and livelihoods in an increasingly digital economy. Since July 2020, we\u2019ve helped 8.5  million people, \nincluding 2.7  million this year. We\u2019ve also focused on skilling women and underrepresented communities in cybers ecurity, \nworking across 28 countries and with nearly 400 US community colleges to scale our efforts.  \nFinally, to help people learn more about AI, we launched the first online Professional Certificate on Generative AI in"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971b72-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 4, "chroma:document": "partnership with LinkedIn Learning,  created AI tools for educators, and held our first AI Community Learning event in the \nUS. These events will be replicated around the world and localized in 10 languages over the next year. We also partnered"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971ba4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 5, "chroma:document": "5 to launch a Generative AI Skills Grant Challenge  to explore how nonprofit, social enterprise, and research or academic \ninstitutions can empower the workforce to use this new generation of AI.  \nHow can we earn trust?  \nTo create positive impact with technology, people need to be able to trust the technolo gies they use and the companies \nbehind them. For us, earning trust spans the responsible use of AI, protecting privacy, and advancing digital safety and \ncybersecurity.  \nOur commitment to responsible AI is not new. Since 2017, we\u2019ve worked to develop our re sponsible AI practice, recognizing \nthat trust is never given but earned through action.  \nWe have translated our AI principles into a core set of implementation processes, as well as tools, training, and practices \nto support compliance. But internal program s aren\u2019t enough. We also enable our customers and partners to develop and \ndeploy AI safely, including through our AI customer commitments and services like Azure AI Studio, with its content safety \ntooling and access to our Responsible AI dashboard.  \nBuildi ng AI responsibly requires that we work with other industry leaders, civil society, and governments to advocate for AI \nregulations and governance globally. This year, we released our Governing AI Blueprint, which outlines concrete legal and \npolicy recommen dations for AI guardrails. We are signatories to the eight voluntary commitments developed with the US \nWhite House, and proud of the six additional commitments we\u2019ve made to further strengthen and operationalize the \nprinciples of safety, security, and trus t.  \nThe era of AI heightens the importance of cybersecurity, and we deepened our work across the private and public sectors \nto improve cyber -resilience. We\u2019ve continued to support Ukraine in defending critical infrastructure, detecting and disrupting \ncyber attacks and cyberinfluence operations, and providing intelligence related to these attacks. Our Microsoft Threat \nAnalysis Center team produced more than 500 intelligence reports to help keep customers and the public informed. And we \npublished our third ann ual Microsoft Digital Defense Report, sharing our learnings and security recommendations.  \nWe also remain committed to creating safe experiences online and protecting customers from illegal and harmful content \nand conduct, while respecting human rights. We supported the Christchurch Call Initiative on Algorithmic Outcomes to"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971bd6-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 5, "chroma:document": "address terrorist an d violent and extremist content online. And through the World Economic Forum\u2019s Global Coalition for \nDigital Safety, we co -led the development of new global principles for digital safety.  \nProtecting customers\u2019 privacy and giving them control of their data is more important than ever. We\u2019ve begun our phased \nrollout of the EU Data Boundary, supporting our commercial and public sector customers\u2019 need for data sovereignty. And \neach month, more than 3  million people exercise their data protection rights through our privacy dashboard, making \nmeaningful choices about how their data is used.  \nHow can we protect fundamental rights?  \nIn an increasingly digital world, we have a responsibility to promote and protect people\u2019s fundamental rights and address \nthe challenges  technology creates. For us, this means upholding responsible business practices, expanding connectivity \nand accessibility, advancing fair and inclusive societies, and empowering communities.  \nIn 2023, we worked diligently to anticipate harmful uses of our  technology and put guardrails on the use of technologies that \nare consequential to people\u2019s lives or legal status, create risk of harm, or threaten human rights. We will continue to asses s \nthe impact of our technologies, engage our stakeholders, and model  and adopt responsible practices and respect for human \nrights \u2014including across our global supply chain.  \nToday, our lives are more connected than ever. Access to education, employment, healthcare, and other critical services is \nincreasingly dependent on te chnology. That\u2019s why we\u2019ve expanded our commitment to bring access to affordable high -\nspeed internet to a quarter of a billion people around the world, including 100  million people in Africa, by the end of 2025. \nSince 2017, we\u2019ve helped bring internet acce ss to 63  million people, a key first step to ensuring communities will have \naccess to AI and other digital technologies.  \nThis year, we also continued working toward our five -year commitment to bridge the disability divide with a focus on helping \nclose the  accessibility knowledge gap. Seven hundred and fifty -thousand learners enriched their understanding of disability \nand accessibility in partnership with LinkedIn Learning, Teach Access, and the Microsoft disability community."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971c08-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 6, "chroma:document": "6 In addition, we\u2019re stepping u p efforts to combat online disinformation through new media content provenance technologies \u2014\nenabling users to verify if an image or video was generated by AI. We continued our efforts to promote racial equity across \nMicrosoft, our ecosystem, and our commun ities, including our work to advance justice reform through data -driven insights. \nAnd we provided support in response to eight humanitarian disasters, including committing $540  million of support to those \nwho have been impacted by the War in Ukraine.  \n  \nFinally, recognizing AI\u2019s potential to advance human rights and humanitarian action, we worked on several AI for \nHumanitarian Action projects. Together with our partners, we\u2019re building the capabilities to identify at -risk communities, \nestimate seasonal hung er, predict malnutrition, and assist in disease identification.  \nHow can we advance sustainability?  \nClimate change is the defining issue of our generation, and addressing it requires swift, collective action and technological  \ninnovation. We are committed to meeting our own goals while enabling others to do the same. That means taking \nresponsibility for our operational footprint and accelerating progress through technology.  \nWe continue to see extreme weather impacting communities globally. To meet the urge nt need, this must be a decade of \ninnovation and decisive action \u2014for Microsoft, our customers, and the world.  \nIn our latest Environmental Sustainability Report, we shared our progress toward our 2030 sustainability targets across \ncarbon, water, waste, and  ecosystems. In 2022, our overall carbon emissions declined by 0.5  percent while our business \ngrew. Addressing scope 3 emissions, which account for the vast majority of our emissions, is arguably our ultimate \nchallenge \u2014one we\u2019ll continue to tackle through our supply chain, policy advances, and industry -wide knowledge -sharing.  \nWe\u2019ve provided just under 1  million people with access to clean water and sanitation, one of five pillars on our path to \nbecoming water positive. And in our pursuit to be zero waste, we achieved a reuse and recycle rate of 82  percent for all our \ncloud hardware and diverted over 12,000 metric tons of solid operational waste from landfills and incinerators.  \nWe also continue to take responsibility for the impacts of our direct operations  on Earth\u2019s ecosystems. We\u2019ve contracted to"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971c3a-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 6, "chroma:document": "protect 17,268 acres of land, over 50  percent more than the land we use to operate. Of that, 12,270 acres \u2014the equivalent \nof approximately 7,000 soccer fields \u2014were designated as permanently protected.  \nTechnology is a powerful lever to help us avoid the most severe impacts of climate change. That\u2019s why we\u2019re accelerating \nour investment in more efficient datacenters, clean energy, enhancements to the Microsoft Cloud for Sustainability and \nPlanetary Computer, and gre en software practices. To date, through our Climate Innovation Fund, we\u2019ve allocated more \nthan $700  million to a global portfolio of 50+ investments spanning sustainable solutions in energy, industrial, and natural \nsystems.  \nFinally, we believe AI can be a  powerful accelerant in addressing the climate crisis. We expanded our AI for Good Lab in \nEgypt and Kenya to improve climate resilience for the continent. And, together with our partners, we launched Global \nRenewables Watch, a first -of-its-kind living atla s that aims to map and measure utility -scale solar and wind installations, \nallowing users to evaluate progress toward a clean energy transition.  \nAlthough this new era promises great opportunity, it demands even greater responsibility from companies like o urs. As we \npursue our four commitments, we focus on transparency \u2014providing clear reporting on how we run our business and how \nwe work with customers and partners. Our annual Impact Summary shares more about our progress and learnings this \nyear, and our Rep orts Hub provides detailed reports on our environmental data, political activities, workforce demographics, \nhuman rights work, and more.  \nOUR CULTURE  \nThere\u2019s never been a more important time to live our culture. The way we work and the speed at which we w ork are \nchanging.  \nIn an economy where yesterday\u2019s exceptional is today\u2019s expected, all of us at Microsoft will need to embrace a growth \nmindset and, more importantly, confront our fixed mindsets as our culture evolves. It will take everyday courage to \nreformulate what innovation, business models, and sales motions look like in this new era. As a high -performance \norganization, we aspire to help our employees maximize their economic opportunity, while simultaneously helping them"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971c6c-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 7, "chroma:document": "7 learn and grow professionally  and connect their own passion and purpose with their everyday work and the company\u2019s \nmission.  \nTo be successful, we need to be grounded in what our customers and the world need. We need to innovate and collaborate \nas One Microsoft. And we need to actively  seek diversity and embrace inclusion to best serve our customers and create a \nculture where everyone can do their best work. To empower the world, we need to represent the world. To that end, we \nremain focused on increasing representation and strengthenin g our culture of inclusion. Even as we navigated challenges \nthis year, our company continued to be the most globally diverse it\u2019s ever been.  \nGiving also remains core to our culture. This year, more than 105,000 employees gave $242  million (including company \nmatch) to over 35,000 nonprofits in 116 countries. And our employees volunteered over 930,000 hours to causes they care \nabout.  \nI am deeply grateful to our employees for their commitment to the company and their communities, and how they are living \nour mission and culture every day in a changing company and world.  \n**  \nIn closing, this is Microsoft\u2019s moment. We have an incredible o pportunity to use this new era of AI to deliver meaningful \nbenefits for every person and every organization on the planet.  \nOn New Year\u2019s Day, I saw a tweet from Andrej Karpathy, Tesla\u2019s former director of AI who now works at OpenAI, about \nhow GitHub Copil ot was writing about 80  percent of his code, with 80  percent accuracy. Two days later, I saw a stunning \nexample of work we\u2019ve done with the government of India\u2019s Ministry of Electronics and IT, which is applying an AI model so \nfarmers in rural areas can in teract with government resources in their native languages.  \nThink about that: A foundation model that was developed on the West Coast of the United States is already transforming \nthe lives of both elite developers and rural farmers on the other side of th e globe. We\u2019ve not seen this speed of diffusion \nand breadth of impact in the tech industry before.  \nAs a company, this is our moment to show up and responsibly build solutions that drive economic growth and benefit every"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971c9e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 7, "chroma:document": "community, country, industry, and p erson. If we do it well, the world will do well, and Microsoft will do well too. I\u2019ve never \nbeen more confident that we will deliver on this promise together in the days, months, and years to come.  \n  \n  \n \nSatya Nadella  \nChairman and Chief Executive Officer   \nOctober  16, 2023"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971cd0-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 8, "chroma:document": "8   \nISSUER PURCHASES OF EQUITY SECURITIES, DIVIDENDS, AND STOCK PERFORMANCE  \nMARKET AND STOCKHOLDERS  \nOur common stock is traded on the NASDAQ Stock Market under the symbol MSFT. On July  24, 2023, there were 83,883 \nregistered holders of record of our common stock.  \nSHARE REPURCHASES AND DIVIDENDS  \nShare Repurchases  \nOn September  18, 2019, our Board of Directors approved a share repurchase program authorizing up to $40.0  billion in \nshare repurchases. This share repurchase program commenced  in February 2020 and was completed in November 2021.  \nOn September  14, 2021, our Board of Directors approved a share repurchase program authorizing up to $60.0  billion in \nshare repurchases. This share repurchase program commenced in November 2021, following completion of the program \napproved on September  18, 2019, has no expiration date, and may be terminated at any time. As of June  30, 2023, \n$22.3  billion remained of this $60.0  billion share repurchase program.  \nWe repurchased the following shares of common stock under the share repurchase programs:  \n  \n(In millions)  Shares  Amount  Shares  Amount  Shares  Amount    \n        \nYear Ended June  30,  2023    2022    2021   \n              \nFirst Quarter   17\u2009 $ 4,600  \u2009  21\u2009 $ 6,200    25\u2009 $ 5,270 \u2009 \nSecond Quarter   20   4,600    20   6,233    27   5,750   \nThird Quarter   18   4,600    26   7,800    25   5,750   \nFourth Quarter   14   4,600    28   7,800    24   6,200               \nTotal    69  $  18,400     95  $  28,033     101  $  22,970"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971d02-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 8, "chroma:document": "All repurchases were made using cash resources. Shares repurchased during fiscal year 2023 and the fourth and third \nquarters of fiscal year 2022 were under the share repurchase program approved on September  14, 2021. Shares \nrepurchased during the second qu arter of fiscal year 2022 were under the share repurchase programs approved on both \nSeptember  14, 2021 and September  18, 2019. All other shares repurchased were under the share repurchase program \napproved on September  18, 2019. The above table excludes sha res repurchased to settle employee tax withholding related \nto the vesting of stock awards of $3.8  billion, $4.7  billion, and $4.4  billion for fiscal years 2023, 2022, and 2021, respectively.  \n  \nDividends  \nOur Board of Directors declared the following divid ends:  \n  \nDeclaration Date  Record Date  Payment  Date  Dividend  \nPer Share  Amount              \nFiscal Year 2023        (In millions)  \n          \nSeptember  20, 2022  November  17, 2022  December  8, 2022  $ 0.68  $ 5,066   \nNovember  29, 2022  February  16, 2023  March  9, 2023   0.68   5,059   \nMarch  14, 2023  May 18, 2023  June  8, 2023   0.68   5,054   \nJune  13, 2023  August  17, 2023  September  14, 2023   0.68   5,054   \n  \nTotal      $  2.72  $  20,233   \n          \n          \nFiscal Year 2022          \n          \nSeptember  14, 2021  November  18, 2021  December  9, 2021  $ 0.62  $ 4,652   \nDecember  7, 2021  February  17, 2022  March  10, 2022   0.62   4,645"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971d2a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 8, "chroma:document": "March  14, 2022  May 19, 2022  June  9, 2022   0.62   4,632   \nJune  14, 2022  August  18, 2022  September  8, 2022   0.62   4,621   \n  \n          \nTotal      $   \u20092.48   $  18,550   \n          \nThe dividend declared on June  13, 2023 was included in other current liabilities as of June  30, 2023."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971d5c-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 9, "chroma:document": "9 STOCK PERFORMANCE  \nCOMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*  \nAmong Microsoft Corporation, the S&P 500 Index  \nand the NASDAQ Computer Index  \n  \n  \n \n  \n  6/18 6/19 6/20 6/21 6/22 6/23   \nMicrosoft Corporation  $  100.00   $  138.07   $  212.34   $  285.40   $  272.82   $  365.24   \nS&P 500   100.00    110.42    118.70    167.13    149.39    178.66   \nNASDAQ Computer   100.00    106.10    156.93    236.08    184.53    242.82   \n* $100 invested on 6/30/18 in stock or index, including reinvestment of dividends. Fiscal year ending June 30."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971d8e-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 10, "chroma:document": "10 Note About Forward -Looking Statements  \nThis report includes estimates, projections, statements relating to our business plans, objectives, and expected operating \nresults that are \u201cforward -looking statements\u201d within the meaning of the Private Securities Litigation Reform Act of 1995, \nSection  27A of the Securities Act of 1933, and Section  21E of the Securities Exchange Act of 1934. Forward -looking \nstatements may appear throughout this report, including the following sections: \u201cBusiness\u201d and \u201cManagement\u2019s Discussion \nand Analysis of Financial Condit ion and Results of Operations\u201d. These forward -looking statements generally are identified \nby the words \u201cbelieve,\u201d \u201cproject,\u201d \u201cexpect,\u201d \u201canticipate,\u201d \u201cestimate,\u201d \u201cintend,\u201d \u201cstrategy,\u201d \u201cfuture,\u201d \u201copportunity,\u201d \u201cplan,\u201d  \u201cmay,\u201d \n\u201cshould,\u201d \u201cwill,\u201d \u201cwould,\u201d \u201cwill be,\u201d \u201cwill continue,\u201d \u201cwill likely result,\u201d and similar expressions. Forward -looking statements are \nbased on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to \ndiffer materially. We describe ri sks and uncertainties that could cause actual results and events to differ materially in \u201cRisk \nFactors,\u201d \u201cManagement\u2019s Discussion and Analysis of Financial Condition and Results of Operations,\u201d and \u201cQuantitative and \nQualitative Disclosures about Market Ris k\u201d in our fiscal year 2023 Form 10 -K. Readers are cautioned not to place undue \nreliance on forward -looking statements, which speak only as of the date they are made. We undertake no obligation to \nupdate or revise publicly any forward -looking statements, wh ether because of new information, future events, or otherwise.  \nBUSINESS  \nGENERAL  \nEmbracing Our Future  \nMicrosoft is a technology company whose mission is to empower every person and every organization on the planet to \nachieve more. We strive to create local opportunity, growth, and impact in every country around the world. We are creating \nthe platforms and tools, powered by artificial intelligence (\u201cAI\u201d), that deliver better, faster, and more effective solutions to \nsupport small and large business competitiveness, improve educational and health outcomes, grow public -sector efficiency, \nand empower human ingen uity. From infrastructure and data, to business applications and collaboration, we provide unique, \ndifferentiated value to customers."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971dc0-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 10, "chroma:document": "differentiated value to customers.  \nIn a world of increasing economic complexity, AI has the power to revolutionize many types of work. Microsoft is now \ninnovating and expanding our portfolio with AI capabilities to help people and organizations overcome today\u2019s challenges \nand emerge stronger. Customers are looking to unlock value from their digital spend and innovate for this next generation \nof AI, while simp lifying security and management. Those leveraging the Microsoft Cloud are best positioned to take \nadvantage of technological advancements and drive innovation. Our investment in AI spans the entire company, from \nMicrosoft Teams and Outlook, to Bing and Xbo x, and we are infusing generative AI capability into our consumer and \ncommercial offerings to deliver copilot capability for all services across the Microsoft Cloud.  \nWe\u2019re committed to making the promise of AI real \u2013 and doing it responsibly. Our work is guided by a core set of principles: \nfairness, reliability and safety, privacy and security, inclusiveness, transparency, and accountability.  \nWhat We Offer  \nFounded in 1975, we develop and support software, services, devices, and solutions that deliver new  value for customers \nand help people and businesses realize their full potential.  \nWe offer an array of services, including cloud -based solutions that provide customers with software, services, platforms, \nand content, and we provide solution support and co nsulting services. We also deliver relevant online advertising to a global \naudience.  \nOur products include operating systems, cross -device productivity and collaboration applications, server applications, \nbusiness solution applications, desktop and server management tools, software development tools, and video games. We \nalso design and sell devices, including PCs, tablets, gaming and entertainment consoles, other intelligent devices, and \nrelated accessories.  \n  \nThe Ambitions That Drive Us  \nTo achieve our vi sion, our research and development efforts focus on three interconnected ambitions:  \n\u2022 Reinvent productivity and business processes."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971de8-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 11, "chroma:document": "11 \u2022 Build the intelligent cloud and intelligent edge platform.  \n\u2022 Create more personal computing.  \nReinvent Productivity and Business Processes  \nAt Microsoft, we provide technology and resources to help our customers create a secure, productive work environment. \nOur family of products plays a key role in the ways the world works, learns, and connects.  \nOur growth depends on securely delivering continuous innovation and advancing our leading productivity and collaboration \ntools and services, including Office 365, Dynamics 365, and LinkedIn. Microsoft 365 brings together Office 365, Windows, \nand Enterprise  Mobility + Security to help organizations empower their employees with AI -backed tools that unlock creativity, \nincrease collaboration, and fuel innovation, all the while enabling compliance coverage and data protection. Microsoft Teams \nis a comprehensive platform for work, with meetings, calls, chat, collaboration, and business process automation. Microsoft \nViva is an employee experience platform that brings together communications, knowledge, learning, resources, and \ninsights. Microsoft 365 Copilot combin es next -generation AI with business data in the Microsoft Graph and Microsoft 365 \napplications.  \nTogether with the Microsoft Cloud, Dynamics 365, Microsoft Teams, and our AI offerings bring a new era of collaborative \napplications that optimize business fun ctions, processes, and applications to better serve customers and employees while \ncreating more business value. Microsoft Power Platform is helping domain experts drive productivity gains with low -code/no -\ncode tools, robotic process automation, virtual age nts, and business intelligence. In a dynamic labor market, LinkedIn is \nhelping professionals use the platform to connect, learn, grow, and get hired.  \nBuild the Intelligent Cloud and Intelligent Edge Platform  \nAs digital transformation and adoption of AI a ccelerates and revolutionizes more business workstreams, organizations in \nevery sector across the globe can address challenges that will have a fundamental impact on their success. For enterprises, \ndigital technology empowers employees, optimizes operation s, engages customers, and in some cases, changes the very \ncore of products and services. We continue to invest in high performance and sustainable computing to meet the growing \ndemand for fast access to Microsoft services provided by our network of cloud c omputing infrastructure and datacenters.  \nOur cloud business benefits from three economies of scale: datacenters that deploy computational resources at significantly"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971e1a-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 11, "chroma:document": "lower cost per unit than smaller ones; datacenters that coordinate and aggregate diverse c ustomer, geographic, and \napplication demand patterns, improving the utilization of computing, storage, and network resources; and multi -tenancy \nlocations that lower application maintenance labor costs.  \nThe Microsoft Cloud provides the best integration acr oss the technology stack while offering openness, improving time to \nvalue, reducing costs, and increasing agility. Being a global -scale cloud, Azure uniquely offers hybrid consistency, developer \nproductivity, AI capabilities, and trusted security and compl iance. We see more emerging use cases and needs for compute \nand security at the edge and are accelerating our innovation across the spectrum of intelligent edge devices, from Internet \nof Things (\u201cIoT\u201d) sensors to gateway devices and edge hardware to build,  manage, and secure edge workloads.  \nOur AI platform, Azure AI, is helping organizations transform, bringing intelligence and insights to the hands of their \nemployees and customers to solve their most pressing challenges. Organizations large and small are deploying Azure AI \nsolutions to achieve more at scale, more easily, with the proper enterprise -level and responsible AI protections.  \n  \nWe have a long -term partnership with OpenAI, a leading AI research and deployment company. We deploy OpenAI\u2019s \nmodels acr oss our consumer and enterprise products. As OpenAI\u2019s exclusive cloud provider, Azure powers all of OpenAI\u2019s \nworkloads. We have also increased our investments in the development and deployment of specialized supercomputing \nsystems to accelerate OpenAI\u2019s re search.  \nOur hybrid infrastructure offers integrated, end -to-end security, compliance, identity, and management capabilities to \nsupport the real -world needs and evolving regulatory requirements of commercial customers and enterprises. Our industry \nclouds b ring together capabilities across the entire Microsoft Cloud, along with industry -specific customizations. Azure Arc \nsimplifies governance and management by delivering a consistent multi -cloud and on -premises management platform.  \nNuance, a leader in conve rsational AI and ambient intelligence across industries including healthcare, financial services, \nretail, and telecommunications, joined Microsoft in 2022. Microsoft and Nuance enable organizations to accelerate their \nbusiness goals with security -focused, cloud -based solutions infused with AI."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971e4c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 12, "chroma:document": "12 We are accelerating our development of mixed reality solutions with new Azure services and devices. Microsoft Mesh \nenables organizations to create custom, immersive experiences for the workplace to help bring remote and hybrid workers \nand teams together.  \nThe ability to convert data into AI drives our competitive advantage. The Microsoft Intelligent Data Platform is a leading \ncloud data platform that fully integrates databases, analytics, and governance. The platform empowers organizations to \ninvest more time creating value rather than integrating and managing their data. Microsoft Fabric is an end -to-end, unified \nanalytics platform that brings together all the data and analytics tools that organizations need.  \nGitHub Copilot is at the forefront of AI -powered software development, giving developers a new tool to write code easier \nand faster so they can focus on more creative problem -solving. From GitHub to Visual Studio, we provide a developer tool \nchain for everyone, n o matter the technical experience, across all platforms, whether Azure, Windows, or any other cloud \nor client platform.  \nWindows also plays a critical role in fueling our cloud business with Windows 365, a desktop operating system that\u2019s also \na cloud servi ce. From another internet -connected device, including Android or macOS devices, users can run Windows \n365, just like a virtual machine.  \nAdditionally, we are extending our infrastructure beyond the planet, bringing cloud computing to space. Azure Orbital i s a \nfully managed ground station as a service for fast downlinking of data.  \nCreate More Personal Computing  \nWe strive to make computing more personal, enabling users to interact with technology in more intuitive, engaging, and \ndynamic ways.  \nWindows 11 of fers innovations focused on enhancing productivity, including Windows Copilot with centralized AI assistance \nand Dev Home to help developers become more productive. Windows 11 security and privacy features include operating \nsystem security, application sec urity, and user and identity security.  \nThrough our Search, News, Mapping, and Browser services, Microsoft delivers unique trust, privacy, and safety features. \nIn February 2023, we launched an all new, AI -powered Microsoft Edge browser and Bing search engi ne with Bing Chat to \ndeliver better search, more complete answers, and the ability to generate content. Microsoft Edge is our fast and secure"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971e7e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 12, "chroma:document": "browser that helps protect users\u2019 data. Quick access to AI -powered tools, apps, and more within Microsoft Edge\u2019s s idebar \nenhance browsing capabilities.  \nWe are committed to designing and marketing first -party devices to help drive innovation, create new device categories, \nand stimulate demand in the Windows ecosystem. The Surface family includes Surface Pro, Surface L aptop, and other \nSurface products.  \n  \nMicrosoft continues to invest in gaming content, community, and cloud services. We have broadened our approach to how \nwe think about gaming end -to-end, from the way games are created and distributed to how they are played, including \nsubscription services l ike Xbox Game Pass and new devices from third -party manufacturers so players can engage across \nPC, console, and mobile. In January 2022, we announced plans to acquire Activision Blizzard, Inc., a leader in game \ndevelopment and an interactive entertainment content publisher.  \nOur Future Opportunity  \nWe are focused on helping customers use the breadth and depth of the Microsoft Cloud to get the most value out of their \ndigital spend while leading the new AI wave across our solution areas. We continue to develo p complete, intelligent solutions \nfor our customers that empower people to be productive and collaborate, while safeguarding businesses and simplifying IT \nmanagement. Our goal is to lead the industry in several distinct areas of technology over the long te rm, which we expect \nwill translate to sustained growth. We are investing significant resources in:  \n\u2022 Transforming the workplace to deliver new modern, modular business applications, drive deeper insights, and \nimprove how people communicate, collaborate, l earn, work, and interact with one another.  \n\u2022 Building and running cloud -based services in ways that utilize ubiquitous computing to unleash new \nexperiences and opportunities for businesses and individuals."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971eb0-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 13, "chroma:document": "13 \u2022 Applying AI and ambient intelligence to drive insights, revolutionize many types of work, and provide substantive \nproductivity gains using natural methods of communication.  \n\u2022 Tackling security from all angles with our integrated, end -to-end solutions spanning security, compliance, \nidentity, and manag ement, across all clouds and platforms.  \n\u2022 Inventing new gaming experiences that bring people together around their shared love for games on any \ndevices and pushing the boundaries of innovation with console and PC gaming.  \n\u2022 Using Windows to fuel our cloud  business, grow our share of the PC market, and drive increased engagement \nwith our services like Microsoft 365 Consumer, Microsoft Teams, Microsoft Edge, Bing, Xbox Game Pass, and \nmore.  \nOur future growth depends on our ability to transcend current produc t category definitions, business models, and sales \nmotions.  \nCorporate Social Responsibility  \nCommitment to Sustainability  \nMicrosoft\u2019s approach to addressing climate change starts with the sustainability of our own business. In 2020, we committed \nto being a carbon negative, water positive, and zero waste company by 2030.  \nIn May 2023, we released our Environmental Sustainabili ty Report which looked back at our progress during fiscal year \n2022. We continued to make progress on our goals, with our overall emissions declining by 0.5  percent. While our Scope 1 \nand Scope 2 emissions continued to decline, Scope 3 emissions increased by 0.5  percent. Scope 3 represented 96  percent \nof our total emissions, resulting primarily from the operations of our suppliers and the use of our products across our \ncustomers.  \nA few examples of our continued progress include:  \n\u2022 Signed new power purchas e agreements, bringing our total portfolio of carbon -free energy to over 13.5 \ngigawatts.  \n\u2022 Contracted for water replenishment projects that are estimated to provide more than 15.6  million cubic meters \nin volumetric water benefit over the lifetime of these  projects.  \n  \n\u2022 Diverted 12,159 metric tons of solid waste from landfills and incinerators across our direct operational footprint.  \n\u2022 Protected 12,270 acres of land in Belize \u2013 more than the 11,206 acres of land that we use around the world."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971ee2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 13, "chroma:document": "Microsoft has a role to play in developing and advancing new climate solutions, but we recognize that no solution can be \noffered by any single company, organization, or government. Our approach helps to support the sustainability needs of our \ncustomers and  the global community. Our Microsoft Cloud for Sustainability, an environmental sustainability management \nplatform that includes Microsoft Sustainability Manager, enables organizations to record, report, and reduce their Scope 1, \n2, and 3 emissions. These digital tools can interoperate with business systems and unify data intelligence for organizations.  \nAddressing Racial Injustice and Inequity  \nWe are committed to addressing racial injustice and inequity in the United States for Black and African American \ncommunities and helping improve lived experiences at Microsoft, in employees\u2019 communities, and beyond. Our Racial Equity \nInitiative focuses on three multi -year pillars, each containing actions and progress we expect to make or exceed by 2025.  \n\u2022 Strengthen ing our communities: using data, technology, and partnerships to help improve the lives of Black \nand African American people in the United States, including our employees and their communities.  \n\u2022 Engaging our ecosystem: using our balance sheet and relatio nships with suppliers and partners to foster \nsocietal change and create new opportunities.  \n\u2022 Increasing representation and strengthening inclusion: building on our momentum by adding a $150  million \ninvestment to strengthen inclusion and double the number of Black, African American, Hispanic, and Latinx \nleaders in the United States by 2025."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971f0a-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 14, "chroma:document": "14 In fiscal year 2023, we collaborated with partners and worked within neighborhoods and communities to launch and scale \na number of projects and programs, including:  \n\u2022 Working with 103 unique organizations in 165 cities and counties on our Justice Reform Initiative to empower \ncommunities and advance racial equity and fairness in the justice system.  \n\u2022 Increasing access to affordable broadband, devices, and digital litera cy training across 14 geographies, \nincluding 11 cities and three states in the Black Rural south.  \n\u2022 Growing our Nonprofit Tech Acceleration for Black and African American Communities program, which uses \ndata, technology, and partnerships to help more than  2,000 local organizations to modernize and streamline \noperations.  \n\u2022 Expanding our Technology Education and Learning Support (\u201cTEALS\u201d) program to reach nearly 400 high \nschools in 21 communities to increase computer science opportunities for Black and African American students.  \nWe exceeded our 2020 goal to double the percen tage of our transaction volumes with Black - and African American -owned \nfinancial institutions by 2023. We are also increasing investment activity with Black - and African American -owned asset \nmanagers, which now represent 45  percent of our external manager group, enabling increased funds into local communities. \nWe also met our goal of creating a $100  million program focused on mission -driven banks. We enriched our supplier \npipeline, achieving our goal to spend $500  million with double the number of Black - and African American -owned suppliers. \nWe also increased the number of identified partners in the Black Partner Growth Initiative by more than 250  percent, \nsurpassing our initial goal.  \nWe have made meaningful progress on representation and inclusion at Micro soft. As of June 2023, we are 93  percent of \nthe way to our 2025 commitment to double the number of Black and African American people managers in the U.S. (below \ndirector level), and 107  percent of the way for Black and African American directors (people ma nagers and individual \ncontributors). We are 28  percent of the way for Hispanic and Latinx people managers (below director level) and 74  percent \nof the way for Hispanic and Latinx directors.  \n  \nInvesting in Digital Skills"}


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topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971f3c-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 14, "chroma:document": "Investing in Digital Skills  \nAfter helping over 80  million jobs eekers around the world access digital skilling resources, we introduced a new Skills for \nJobs initiative to support a more skills -based labor market, with greater flexibility and accessible learning paths to develop \nthe right skills needed for the most in -demand jobs. Our Skills for Jobs initiative brings together learning resources, \ncertification opportunities, and job -seeker tools from LinkedIn, GitHub, and Microsoft Learn, and is built on data insights \ndrawn from LinkedIn\u2019s Economic Graph.  \nWe also laun ched a national campaign to help skill and recruit 250,000 people into the cybersecurity workforce by 2025, \nrepresenting half of the country\u2019s workforce shortage. To that end, we are making curriculum available free of charge to all \nof the nation\u2019s higher education institutions, providing training for new and existing faculty, and providing scholarships and \nsupplemental resources to 25,000 students. We have expanded the cyber skills initiative to 27 additional countries that \nshow elevated cyberthreat risks coupled with significant gaps in their cybersecurity workforces, partnering with nonprofits \nand other educational institutions to train the next generation of cybersecurity workers.  \nGenerative AI is creating unparalleled opportunities to empower workers g lobally, but only if everyone has the skills to use \nit. To address this, in June 2023 we launched a new AI Skills Initiative to help everyone learn how to harness the power of \nAI. This includes a new LinkedIn learning pathway offering new coursework on lea rning the foundations of generative AI. \nWe also launched a new global grant challenge to uncover new ways of training workers on generative AI and are providing \ngreater access to digital learning events and resources for everyone to improve their AI fluenc y.  \nHUMAN CAPITAL RESOURCES  \nOverview  \nMicrosoft aims to recruit, develop, and retain world -changing talent from a diversity of backgrounds. To foster their and our \nsuccess, we seek to create an environment where people can thrive and do their best work. W e strive to maximize the \npotential of our human capital resources by creating a respectful, rewarding, and inclusive work environment that enables \nour global employees to create products and services that further our mission."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971f6e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 14, "chroma:document": "our global employees to create products and services that further our mission.  \nAs of June  30, 2023, we emplo yed approximately 221,000 people on a full -time basis, 120,000 in the U.S. and 101,000 \ninternationally. Of the total employed people, 89,000 were in operations, including manufacturing, distribution, product"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971fa0-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 15, "chroma:document": "15 support, and consulting services; 72,000 were in  product research and development; 45,000 were in sales and marketing; \nand 15,000 were in general and administration. Certain employees are subject to collective bargaining agreements.  \nOur Culture  \nMicrosoft\u2019s culture is grounded in growth mindset. This means everyone is on a continuous journey to learn and grow, \noperating as one company instead of multiple siloed businesses.  \nOur employee listening systems enable us to gather feedback directly from our workforce to inform our programs and \nemployee needs globally. Employees participate in our Employee Signals surveys, which cover a variety of topics such as \nthriving, inclusion, team culture, wellbeing, and learning and development. We also collect Dai ly Signals employee survey \nresponses, giving us real -time insights into ways we can support our employees. In addition to Employee Signals and Daily \nSignals surveys, we gain insights through onboarding, exit surveys, internal Viva Engage channels, employee  Q&A \nsessions, and our internal AskHR Service support.  \nDiversity and inclusion are core to our business model, and we hold ourselves accountable for driving global systemic \nchange in our workforce and creating an inclusive work environment. We support multiple highly active Employee Resource \nGroups for women, families, racial and ethnic minorities, military, people with disabilities, and employees who identify as \nLGBTQIA+, where employees can go for support, networking, and community -building. As described in our 2022 Proxy \nStatement, annual performance and com pensation reviews of our senior leadership team include an evaluation of their \ncontributions to employee culture and diversity. To ensure accountability over time, we publicly disclose our progress on a \nmultitude of workforce metrics including:  \n\u2022 Detailed  breakdowns of gender, racial, and ethnic minority representation in our employee population, with data \nby job types, levels, and segments of our business.  \n\u2022 Our EEO -1 report (equal employment opportunity).  \n\u2022 Disability representation.  \n\u2022 Pay equity (see  details below).  \nTotal Rewards and Pay Equity  \nWe develop dynamic, sustainable, market -driven, and strategic programs with the goal of providing a highly differentiated \nportfolio to attract, reward, and retain top talent and enable our employees to thrive . These programs reinforce our culture"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5971fd2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 15, "chroma:document": "and values such as collaboration and growth mindset. Managers evaluate and recommend rewards based on, for example, \nhow well we leverage the work of others and contribute to the success of our colleagues. We monitor p ay equity and career \nprogress across multiple dimensions. Our total compensation opportunity is highly differentiated and is market competitive.  \nIn order to manage our costs in a dynamic, competitive environment, in fiscal year 2023 we announced that base  salaries \nof salaried employees would remain at fiscal year 2022 levels. Pay increases continue to be available for rewards -eligible \nhourly and equivalent employees. We will continue our practice of investing in stock for all rewards -eligible employees, \nsalaried and hourly, and investing in bonuses for all eligible employees.  \nSince 2016, we have reported on pay equity as part of our annual Diversity and Inclusion report. In 2022, we reported that \nall racial and ethnic minority employees in the U.S. combine d earn $1.008 for every $1.000 earned by their white \ncounterparts, that women in the U.S. earn $1.007 for every $1.000 earned by their counterparts who are men, and that \nwomen outside the U.S. earn $1.002 for every $1.000 earned by their counterparts outsi de the U.S. who are men. In this \nyear\u2019s report, we again expanded our pay equity data beyond the U.S. to report on 61 additional countries (up from 12 last \nyear), representing 99.8% of our global Microsoft workforce.  \nIn addition, we began reporting on una djusted median pay in our annual report, comparing total pay amounts for all \nemployees regardless of factors such as job title, level, or tenure. For employees who are eligible for rewards, the analysis  \nshowed that total pay for women is 89.6% of total pay  for men in the U.S. and 86.2% outside of the U.S., and total pay for \nracial and ethnic minorities in the U.S. is 89.9% of total pay for white employees. As we continue to increase representation  \nfor women and racial and ethnic minorities at more senior le vels, and continue to ensure pay equity for all, the gap between \nthe medians will reduce."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972004-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 15, "chroma:document": "the medians will reduce.  \nOur intended result is a global performance and development approach that fosters our culture, and competitive \ncompensation that ensures equitable pay by role while supporting pay for performance."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597202c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 16, "chroma:document": "16 Wellbeing and Hybrid Work  \nMicrosoft is committed to supporting our employees\u2019 wellbeing while they are at work and in their personal lives. We have \ninvested significantly in wellbeing, and offer a differentiated benefits p ackage which includes many physical, emotional, and \nfinancial wellness programs including counseling through the Microsoft CARES Employee Assistance Program, mental \nwellbeing support, flexible fitness benefits, disability accommodations, savings and invest ment tools, adoption assistance, \nand back -up care for children and elders. Finally, our Occupational Health and Safety program helps ensure employees \ncan stay safe while they are working.  \nWe introduced Hybrid Workplace Flexibility Guidance to better suppo rt leaders, managers, and employees in hybrid work \nscenarios. Our ongoing survey data shows that 93% of employees value the flexibility related to work location, work site, \nand work hours, and 78% are satisfied with the quality of connection with co -worker s. There is no one -size-fits-all approach \nto flexible work at Microsoft. As a company, we will continue to leverage data and research to inform decision making, \nbalancing the needs of business, team, and individual.  \nLearning and Development  \nWe offer a ra nge of learning opportunities, including personalized opportunities on our internal and external learning portals, \nin-classroom learning, required learning on compliance and company culture, on -the-job advancement opportunities, and \nmanager coaching. We al so provide customized manager learning, new employee orientation, and tools for operating in a \nflexible hybrid work environment.  \nAll Microsoft employees globally access our single Viva Learning tool for both required and personal choice learning. This \nincludes courses focused on our core principles and compliance matters, such as Business Conduct, Privacy, Security \nFoundations, and Harassment Prevention. We also deliver skills training for employees based on their profession and role \ndiscipline.  \nWe have o ver 27,000 people managers, all of whom must complete between 20 -33 hours of compulsory training on \nleadership and management and are assigned additional targeted training on an ongoing basis related to people \nmanagement, compliance, and culture.  \nOPERATING SEGMENTS  \nWe operate our business and report our financial performance using three segments: Productivity and Business Processes, \nIntelligent Cloud, and More Personal Computing. Our segments provide management with a comprehensive financial view"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597205e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 16, "chroma:document": "of our key businesses. The segments enable the alignment of strategies and objectives across the development, sales, \nmarketing, and services organizations, and they provide a framework for timely and rational allocation of resources within \nbusinesses.  \nAdditional information on our operating segments and geographic and product information is contained in Note 19 \u2013 \nSegment Information and Geographic Data of the Notes to Financial Statements.  \nOur reportable segments are described below.  \nProductivity and Bus iness Processes  \nOur Productivity and Business Processes segment consists of products and services in our portfolio of productivity, \ncommunication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:  \n\u2022 Office Commercial (Office 365 subscriptions, the Office 365 portion of Microsoft 365 Commercial subscriptions, \nand Office licensed on -premises), comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 \nSecurity and Compliance, Microsoft Viva, a nd Microsoft 365 Copilot.  \n\u2022 Office Consumer, including Microsoft 365 Consumer subscriptions, Office licensed on -premises, and other \nOffice services.  \n\u2022 LinkedIn, including Talent Solutions, Marketing Solutions, Premium Subscriptions, and Sales Solutions."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972090-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 17, "chroma:document": "17 \u2022 Dynamics business solutions, including Dynamics 365, comprising a set of intelligent, cloud -based applications \nacross ERP, CRM (including Customer Insights), Power Apps, and Power Automate; and on -premises ERP \nand CRM applications.  \nOffice Commercial  \nOffice Commercial is designed to increase personal, team, and organizational productivity through a range of products and \nservices. Growth depends on our ability to reach new users in new markets such as frontline workers, small and medium \nbusinesses, and g rowth markets, as well as add value to our core product and service offerings to span productivity \ncategories such as communication, collaboration, analytics, security, and compliance. Office Commercial revenue is mainly \naffected by a combination of contin ued installed base growth and average revenue per user expansion, as well as the \ncontinued shift from Office licensed on -premises to Office 365.  \nOffice Consumer  \nOffice Consumer is designed to increase personal productivity and creativity through a range of products and services. \nGrowth depends on our ability to reach new users, add value to our core product set, and continue to expand our product \nand service offerings into new markets. Office Consumer revenue is mainly affected by the percentage of custom ers that \nbuy Office with their new devices and the continued shift from Office licensed on -premises to Microsoft 365 Consumer \nsubscriptions. Office Consumer Services revenue is mainly affected by the demand for communication and storage through \nSkype, Outl ook.com, and OneDrive, which is largely driven by subscriptions, advertising, and the sale of minutes.  \nLinkedIn  \nLinkedIn connects the world\u2019s professionals to make them more productive and successful and transforms the way \ncompanies hire, market, sell, and learn. Our vision is to create economic opportunity for every member of the global \nworkforce through the ongoin g development of the world\u2019s first Economic Graph, a digital representation of the global \neconomy. In addition to LinkedIn\u2019s free services, LinkedIn offers monetized solutions: Talent Solutions, Marketing Solutions,  \nPremium Subscriptions, and Sales Solutio ns. Talent Solutions provide insights for workforce planning and tools to hire, \nnurture, and develop talent. Talent Solutions also includes Learning Solutions, which help businesses close critical skills \ngaps in times where companies are having to do more with existing talent. Marketing Solutions help companies reach,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59720c2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 17, "chroma:document": "engage, and convert their audiences at scale. Premium Subscriptions enable professionals to manage their professional \nidentity, grow their network, find jobs, and connect with talent through a dditional services like premium search. Sales \nSolutions help companies strengthen customer relationships, empower teams with digital selling tools, and acquire new \nopportunities. LinkedIn has over 950  million members and has offices around the globe. Growt h will depend on our ability \nto increase the number of LinkedIn members and our ability to continue offering services that provide value for our members \nand increase their engagement. LinkedIn revenue is mainly affected by demand from enterprises and profe ssional \norganizations for subscriptions to Talent Solutions, Sales Solutions, and Premium Subscriptions offerings, as well as \nmember engagement and the quality of the sponsored content delivered to those members to drive Marketing Solutions.  \nDynamics  \nDynamics provides cloud -based and on -premises business solutions for financial management, enterprise resource \nplanning (\u201cERP\u201d), customer relationship management (\u201cCRM\u201d), supply chain management, and other application \ndevelopment platforms for small and mediu m businesses, large organizations, and divisions of global enterprises. Dynamics \nrevenue is driven by the number of users licensed and applications consumed, expansion of average revenue per user, and \nthe continued shift to Dynamics 365, a unified set of c loud-based intelligent business applications, including Power Apps \nand Power Automate.  \nCompetition  \nCompetitors to Office include software and global application vendors, such as Apple, Cisco Systems, Meta, Google, Okta, \nProofpoint, Slack, Symantec, Zoom, and numerous web -based and mobile application competitors as well as local \napplication developers. A pple distributes versions of its pre -installed application software, such as email and calendar \nproducts, through its PCs, tablets, and phones. Cisco Systems is using its position in enterprise communications equipment \nto grow its unified communications bu siness. Meta offers communication tools to enable productivity and engagement within \norganizations. Google provides a hosted messaging and productivity suite. Slack provides teamwork and collaboration \nsoftware. Zoom offers videoconferencing and cloud phone  solutions. Okta, Proofpoint, and Symantec provide security"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59720f4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 18, "chroma:document": "18 solutions across email security, information protection, identity, and governance. Web -based offerings competing with \nindividual applications have also positioned themselves as alternatives to our  products and services. We compete by \nproviding powerful, flexible, secure, integrated industry -specific, and easy -to-use productivity and collaboration tools and \nservices that create comprehensive solutions and work well with technologies our customers al ready have both on -premises \nor in the cloud.  \nLinkedIn faces competition from online professional networks, recruiting companies, talent management companies, and \nlarger companies that are focusing on talent management and human resource services; job boar ds; traditional recruiting \nfirms; and companies that provide learning and development products and services. Marketing Solutions competes with \nonline and offline outlets that generate revenue from advertisers and marketers, and Sales Solutions competes wit h online \nand offline outlets for companies with lead generation and customer intelligence and insights.  \nDynamics competes with cloud -based and on -premises business solution providers such as Oracle, Salesforce, and SAP.  \nIntelligent Cloud  \nOur Intelligent  Cloud segment consists of our public, private, and hybrid server products and cloud services that can power \nmodern business and developers. This segment primarily comprises:  \n\u2022 Server products and cloud services, including Azure and other cloud services; SQL Server, Windows Server, \nVisual Studio, System Center, and related Client Access Licenses (\u201cCALs\u201d); and Nuance and GitHub.  \n\u2022 Enterprise Services, including Enterprise Support Services, Industry Solutions (formerly Microsoft Consulting \nServices), and Nu ance professional services.  \nServer Products and Cloud Services  \nAzure is a comprehensive set of cloud services that offer developers, IT professionals, and enterprises freedom to build, \ndeploy, and manage applications on any platform or device. Customers can use Azure through our global network of \ndatacenters for computing, networking, storage, mobile and web application services, AI, IoT, cognitive services, and \nmachine learning. Azure enables customers to devote more resources to development and use of a pplications that benefit \ntheir organizations, rather than managing on -premises hardware and software. Azure revenue is mainly affected by \ninfrastructure -as-a-service and platform -as-a-service consumption -based services, and per user -based services such as \nEnterprise Mobility + Security."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972126-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 18, "chroma:document": "Enterprise Mobility + Security.  \nAzure AI offerings provide a competitive advantage as companies seek ways to optimize and scale their business with \nmachine learning. Azure\u2019s purpose -built, AI -optimized infrastructure allows advanced models, including GPT -4 services \ndesigned for developers and data scientists, to do more with less. Customers can integrate large language models and \ndevelop the next generation of AI apps and services.  \nOur server products are designed to make IT professionals, developers, and  their systems more productive and efficient. \nServer software is integrated server infrastructure and middleware designed to support software applications built on the \nWindows Server operating system. This includes the server platform, database, business i ntelligence, storage, \nmanagement and operations, virtualization, service -oriented architecture platform, security, and identity software. We also \nlicense standalone and software development lifecycle tools for software architects, developers, testers, and project \nmanagers. Server products revenue is mainly affected by purchases through volume licensing programs, licenses sold to \noriginal equipment manufacturers (\u201cOEM\u201d), and retail packaged products. CALs provide access rights to certain server \nproducts, inc luding SQL Server and Windows Server, and revenue is reported along with the associated server product.  \nNuance and GitHub include both cloud and on -premises offerings. Nuance provides healthcare and enterprise AI solutions. \nGitHub provides a collaboration  platform and code hosting service for developers.  \n  \nEnterprise Services  \nEnterprise Services, including Enterprise Support Services, Industry Solutions, and Nuance Professional Services, assist \ncustomers in developing, deploying, and managing Microsoft s erver solutions, Microsoft desktop solutions, and Nuance \nconversational AI and ambient intelligent solutions, along with providing training and certification to developers and IT \nprofessionals on various Microsoft products."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597214e-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 19, "chroma:document": "19 Competition  \nAzure faces divers e competition from companies such as Amazon, Google, IBM, Oracle, VMware, and open source \nofferings. Azure\u2019s competitive advantage includes enabling a hybrid cloud, allowing deployment of existing datacenters with \nour public cloud into a single, cohesive i nfrastructure, and the ability to run at a scale that meets the needs of businesses \nof all sizes and complexities. Our AI offerings compete with AI products from hyperscalers such as Amazon Bedrock, \nAmazon CodeWhisperer, and Google AI, as well as products from other emerging competitors, many of which are also \ncurrent or potential partners, including Meta\u2019s LLaMA2 and other open source solutions. Our Enterprise Mobility + Security \nofferings also compete with products from a range of competitors including id entity vendors, security solution vendors, and \nnumerous other security point solution vendors. We believe our cloud\u2019s global scale, coupled with our broad portfolio of \nidentity and security solutions, allows us to effectively solve complex cybersecurity ch allenges for our customers and \ndifferentiates us from the competition.  \nOur server products face competition from a wide variety of server operating systems and applications offered by companies \nwith a range of market approaches. Vertically integrated comp uter manufacturers such as Hewlett -Packard, IBM, and Oracle \noffer their own versions of the Unix operating system preinstalled on server hardware. Nearly all computer manufacturers \noffer server hardware for the Linux operating system, and many contribute t o Linux operating system development. The \ncompetitive position of Linux has also benefited from the large number of compatible applications now produced by many \ncommercial and non -commercial software developers. A number of companies, such as Red Hat, supp ly versions of Linux.  \nWe compete to provide enterprise -wide computing solutions and point solutions with numerous commercial software \nvendors that offer solutions and middleware technology platforms, software applications for connectivity (both Internet a nd \nintranet), security, hosting, database, and e -business servers. IBM and Oracle lead a group of companies focused on the \nJava Platform Enterprise Edition that competes with our enterprise -wide computing solutions. Commercial competitors for \nour server ap plications for PC -based distributed client -server environments include CA Technologies, IBM, and Oracle. Our \nweb application platform software competes with open source software such as Apache, Linux, MySQL, and PHP. In"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972180-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 19, "chroma:document": "middleware, we compete against Java vendors.  \nOur database, business intelligence, and data warehousing solutions offerings compete with products from IBM, Oracle, \nSAP, Snowflake, and other companies. Our system management solutions compete with server management and server \nvirtualization pl atform providers, such as BMC, CA Technologies, Hewlett -Packard, IBM, and VMware. Our products for \nsoftware developers compete against offerings from Adobe, IBM, Oracle, and other companies, and also against open \nsource projects, including Eclipse (sponsor ed by CA Technologies, IBM, Oracle, and SAP), PHP, and Ruby on Rails.  \nWe believe our server products provide customers with advantages in performance, total costs of ownership, and \nproductivity by delivering superior applications, development tools, compatibility with a broad base of hardware and software  \napplications, secur ity, and manageability.  \nOur Enterprise Services business competes with a wide range of companies that provide strategy and business planning, \napplication development, and infrastructure services, including multinational consulting firms and small niche bu sinesses \nfocused on specific technologies.  \n  \nMore Personal Computing  \nOur More Personal Computing segment consists of products and services that put customers at the center of the experience \nwith our technology. This segment primarily comprises:  \n\u2022 Window s, including Windows OEM licensing (\u201cWindows OEM\u201d) and other non -volume licensing of the Windows \noperating system; Windows Commercial, comprising volume licensing of the Windows operating system, \nWindows cloud services, and other Windows commercial offerin gs; patent licensing; and Windows IoT.  \n\u2022 Devices, including Surface, HoloLens, and PC accessories.  \n\u2022 Gaming, including Xbox hardware and Xbox content and services, comprising first - and third -party content \n(including games and in -game content), Xbox Game Pass and other subscriptions, Xbox Cloud Gaming, \nadvertising, third -party disc royalties, and other cl oud services.  \n\u2022 Search and news advertising, comprising Bing (including Bing Chat), Microsoft News, Microsoft Edge, and \nthird-party affiliates."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59721b2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 20, "chroma:document": "20 Windows  \nThe Windows operating system is designed to deliver a more personal computing experience for users by  enabling \nconsistency of experience, applications, and information across their devices. Windows OEM revenue is impacted \nsignificantly by the number of Windows operating system licenses purchased by OEMs, which they pre -install on the devices \nthey sell. In  addition to computing device market volume, Windows OEM revenue is impacted by:  \n\u2022 The mix of computing devices based on form factor and screen size.  \n\u2022 Differences in device market demand between developed markets and growth markets.  \n\u2022 Attachment of Win dows to devices shipped.  \n\u2022 Customer mix between consumer, small and medium businesses, and large enterprises.  \n\u2022 Changes in inventory levels in the OEM channel.  \n\u2022 Pricing changes and promotions, pricing variation that occurs when the mix of devices manuf actured shifts from \nlocal and regional system builders to large multinational OEMs, and different pricing of Windows versions \nlicensed.  \n\u2022 Constraints in the supply chain of device components.  \n\u2022 Piracy.  \nWindows Commercial revenue, which includes volume licensing of the Windows operating system and Windows cloud \nservices such as Microsoft Defender for Endpoint, is affected mainly by the demand from commercial customers for volume \nlicensing and Software Ass urance (\u201cSA\u201d), as well as advanced security offerings. Windows Commercial revenue often \nreflects the number of information workers in a licensed enterprise and is relatively independent of the number of PCs sold \nin a given year.  \nPatent licensing includes our programs to license patents we own for use across a broad array of technology areas, including \nmobile devices and cloud offerings.  \nWindows IoT extends the power of Windows and the cloud to intelligent systems by delivering specialized operating \nsystem s, tools, and services for use in embedded devices.  \nDevices  \nWe design and sell devices, including Surface, HoloLens, and PC accessories. Our devices are designed to enable people \nand organizations to connect to the people and content that matter most usi ng Windows and integrated Microsoft products \nand services. Surface is designed to help organizations, students, and consumers be more productive. Growth in Devices \nis dependent on total PC shipments, the ability to attract new customers, our product roadma p, and expanding into new \ncategories.  \nGaming"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59721e4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 20, "chroma:document": "categories.  \nGaming  \nOur gaming platform is designed to provide a variety of entertainment through a unique combination of content, community, \nand cloud services. Our exclusive game content is created through Xbox Game Studios, a collection of first -party studios \ncreating iconic and differentiated gaming experiences. We continue to invest in new gaming studios and content to expand \nour intellectual property roadmap and leverage new content creators. These unique gaming experiences are the cornerstone \nof Xbox Game Pass, a subscription service and gaming community with access to a curated library of over 400 first - and \nthird-party console and PC titles.  \nThe gamer remains at the heart of the Xbox ecosystem. We are identifying new oppo rtunities to attract gamers across a \nvariety of different end points through our first - and third -party content and business diversification across subscriptions, \nads, and digital stores. We\u2019ve seen new devices from third -party manufacturers along with key  PC and mobile end points \nthat help us empower gamers to play in a way that is most convenient to them. We are focused on growing the platform \nand expanding to new ecosystems to engage as many gamers as possible.   \nXbox enables people to connect and share o nline gaming experiences that are accessible on Xbox consoles, Windows -\nenabled devices, and other devices.  Xbox is designed to benefit users by providing access to a network of certified \napplications and services and to benefit our developer and partner ec osystems by providing access to a large customer"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972216-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 21, "chroma:document": "21 base. Xbox revenue is mainly affected by subscriptions and sales of first - and third -party content, as well as advertising. \nGrowth of our Gaming business is determined by the overall active user base through  Xbox enabled content, availability of \ngames, providing exclusive game content that gamers seek, the computational power and reliability of the devices used to \naccess our content and services, and the ability to create new experiences through first -party c ontent creators.  \nSearch and News Advertising  \nOur Search and news advertising business is designed to deliver relevant search, native, and display advertising to a global \naudience. Our Microsoft Edge browser and Bing Chat capabilities are key tools to ena ble user acquisition and engagement, \nwhile our technology platform enables accelerated delivery of digital advertising solutions. In addition to first -party tools, we \nhave several partnerships with companies, such as Yahoo, through which we provide and mon etize search offerings. \nGrowth depends on our ability to attract new users, understand intent, and match intent with relevant content on advertising \nofferings.  \nCompetition  \nWindows faces competition from various software products and from alternative plat forms and devices, mainly from Apple \nand Google. We believe Windows competes effectively by giving customers choice, value, flexibility, security, an easy -to-\nuse interface, and compatibility with a broad range of hardware and software applications, includi ng those that enable \nproductivity.  \nDevices face competition from various computer, tablet, and hardware manufacturers who offer a unique combination of \nhigh-quality industrial design and innovative technologies across various price points. These manufactu rers, many of which \nare also current or potential partners and customers, include Apple and our Windows OEMs.  \nXbox and our cloud gaming services face competition from various online gaming ecosystems and game streaming \nservices, including those operated b y Amazon, Apple, Meta, and Tencent. We also compete with other providers of \nentertainment services such as video streaming platforms. Our gaming platform competes with console platforms from \nNintendo and Sony, both of which have a large, established base o f customers.  We believe our gaming platform is effectively \npositioned against, and uniquely differentiated from, competitive products and services based on significant innovation in \nhardware architecture, user interface, developer tools, online gaming and entertainment services, and continued strong"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972248-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 21, "chroma:document": "exclusive content from our own first -party game franchises as well as other digital content offerings.  \nOur Search and news advertising business competes with Google and a wide array of websites, social platform s like Meta, \nand portals that provide content and online offerings to end users.  \nOPERATIONS  \nWe have regional operations service centers that support our operations, including customer contract and order processing, \nbilling, credit and collections, inform ation processing, and vendor management and logistics. The center in Ireland supports \nthe African, Asia -Pacific, European, and Middle East regions; and the centers in Arlington, Virginia, Atlanta, Georgia, \nCharlotte, North Carolina, Fargo, North Dakota, Fo rt Lauderdale, Florida, Redmond, Washington, Reno, Nevada, and \nPuerto Rico support the American regions.  \nIn addition to our operations centers, we also operate datacenters throughout each of these regions. We continue to identify \nand evaluate opportunitie s to expand our datacenter locations and increase our server capacity to meet the evolving needs \nof our customers, particularly given the growing demand for AI services. Our datacenters depend on the availability of \npermitted and buildable land, predictabl e energy, networking supplies, and servers, including graphics processing units \n(\u201cGPUs\u201d) and other components.  \nOur devices are primarily manufactured by third -party contract manufacturers. For the majority of our products, we have the \nability to use other  manufacturers if a current vendor becomes unavailable or unable to meet our requirements. However, \nsome of our products contain certain components for which there are very few qualified suppliers. Extended disruptions at \nthese suppliers could impact our a bility to manufacture devices on time to meet consumer demand."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972284-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 22, "chroma:document": "22 RESEARCH AND DEVELOPMENT  \nProduct and Service Development, and Intellectual Property  \nWe develop most of our products and services internally through the following engineering groups.  \n\u2022 Cloud  and AI  \u2013 focuses on making IT professionals, developers, partners, independent software vendors, and \ntheir systems more productive and efficient through development of Azure AI platform and cloud infrastructure, \nserver, database, CRM, ERP, software develo pment tools and services (including GitHub), AI cognitive \nservices, and other business process applications and services for enterprises.  \n\u2022 Strategic Missions and Technologies  \u2013 focuses on incubating technical products and support solutions with \ntransform ative potential for the future of cloud computing and continued company growth across quantum \ncomputing, Azure Space  & Missions Engineering, telecommunications, and Microsoft Federal Sales and \nDelivery.  \n\u2022 Experiences and Devices  \u2013 focuses on delivering hi gh value end -user experiences across our products, \nservices, and devices, including Microsoft 365, Windows, Microsoft Teams, Search (including Microsoft Edge \nand Bing Chat) and other advertising -based services, and the Surface line of devices.  \n\u2022 Microsoft  Security  \u2013 focuses on delivering a comprehensive portfolio of services that protect our customers\u2019 \ndigital infrastructure through cloud platform and application security, data protection and governance, identity \nand network access, and device management.    \n\u2022 Technology and Research  \u2013 focuses on fundamental research, product and business incubations, and forward -\nlooking AI innovations that span infrastructure, services, and applications.  \n\u2022 LinkedIn  \u2013 focuses on our services that transform the way professio nals grow their network and find jobs and \nthe way businesses hire, market, sell, and learn.  \n  \n\u2022 Gaming  \u2013 focuses on developing hardware, content, and services across a large range of platforms to help \ngrow our user base through game experiences and social  interaction.  \nInternal development allows us to maintain competitive advantages that come from product differentiation and closer \ntechnical control over our products and services. It also gives us the freedom to decide which modifications and \nenhancements  are most important and when they should be implemented. We strive to obtain information as early as \npossible about changing usage patterns and hardware advances that may affect software and hardware design. Before \nreleasing new software platforms, and as we make significant modifications to existing platforms, we provide application"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59722b6-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 22, "chroma:document": "vendors with a range of resources and guidelines for development, training, and testing. Generally, we also create product \ndocumentation internally.  \nWe protect our intellectua l property investments in a variety of ways. We work actively in the U.S. and internationally to \nensure the enforcement of copyright, trademark, trade secret, and other protections that apply to our software and hardware \nproducts, services, business plans,  and branding. We are a leader among technology companies in pursuing patents and \ncurrently have a portfolio of over 70,000 U.S. and international patents issued and over 19,000 pending worldwide. While \nwe employ much of our internally -developed intellectu al property in our products and services, we also engage in outbound \nlicensing of specific patented technologies that are incorporated into licensees\u2019 products. From time to time, we enter into \nbroader cross -license agreements with other technology compani es covering entire groups of patents. We may also \npurchase or license technology that we incorporate into our products and services. At times, we make select intellectual \nproperty broadly available at no or low cost to achieve a strategic objective, such a s promoting industry standards, \nadvancing interoperability, supporting societal and/or environmental efforts, or attracting and enabling our external \ndevelopment community. Our increasing engagement with open source software will also cause us to license o ur intellectual \nproperty rights broadly in certain situations.  \nWhile it may be necessary in the future to seek or renew licenses relating to various aspects of our products and services, \nwe believe, based upon past experience and industry practice, such l icenses generally can be obtained on commercially \nreasonable terms. We believe our continuing research and product development are not materially dependent on any single \nlicense or other agreement with a third party relating to the development of our produ cts.  \nInvesting in the Future  \nOur success is based on our ability to create new and compelling products, services, and experiences for our users, to \ninitiate and embrace disruptive technology trends, to enter new geographic and product markets, and to dri ve broad adoption"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59722e8-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 23, "chroma:document": "23 of our products and services. We invest in a range of emerging technology trends and breakthroughs that we believe offer \nsignificant opportunities to deliver value to our customers and growth for the company. Based on our assessment of ke y \ntechnology trends, we maintain our long -term commitment to research and development across a wide spectrum of \ntechnologies, tools, and platforms spanning digital work and life experiences, cloud computing, AI, devices, and operating \nsystems.  \nWhile our m ain product research and development facilities are located in Redmond, Washington, we also operate research \nand development facilities in other parts of the U.S. and around the world. This global approach helps us remain competitive \nin local markets and e nables us to continue to attract top talent from across the world.  \nWe plan to continue to make significant investments in a broad range of product research and development activities, and \nas appropriate we will coordinate our research and development acro ss operating segments and leverage the results across \nthe company.  \nIn addition to our main research and development operations, we also operate Microsoft Research. Microsoft Research is \none of the world\u2019s largest corporate research organizations, often wor king in close collaboration with top universities around \nthe world, and is focused on advancing the state -of-the-art in computer science and a broad range of other disciplines. Our \ninvestment in fundamental research provides us a unique perspective on futu re trends and contributes to our innovation.  \n  \nDISTRIBUTION, SALES, AND MARKETING  \nWe market and distribute our products and services through the following channels: OEMs, direct, and distributors and \nresellers. Our sales organization performs a variety of functions, including working directly with commercial enterprises and  \npublic -secto r organizations worldwide to identify and meet their technology and digital transformation requirements; \nmanaging OEM relationships; and supporting system integrators, independent software vendors, and other partners who \nengage directly with our customers to perform sales, consulting, and fulfillment functions for our products and services.  \nOEMs  \nWe distribute our products and services through OEMs that pre -install our software on new devices and servers they sell. \nThe largest component of the OEM business  is the Windows operating system pre -installed on devices. OEMs also sell \ndevices pre -installed with other Microsoft products and services, including applications such as Office and the capability to"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597231a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 23, "chroma:document": "subscribe to Office 365.  \nThere are two broad categories  of OEMs.  The largest category of OEMs are direct OEMs as our relationship with them is \nmanaged through a direct agreement between Microsoft and the OEM. We have distribution agreements covering one or \nmore of our products with virtually all the multinatio nal OEMs, including Dell, Hewlett -Packard, Lenovo, and with many \nregional and local OEMs.  The second broad category of OEMs are system builders consisting of lower -volume PC \nmanufacturers, which source Microsoft software for pre -installation and local redi stribution primarily through the Microsoft \ndistributor channel rather than through a direct agreement or relationship with Microsoft.  \nDirect  \nMany organizations that license our products and services transact directly with us through Enterprise Agreements and \nEnterprise Services contracts, with sales support from system integrators, independent software vendors, web agencies, \nand partners that a dvise organizations on licensing our products and services (\u201cEnterprise Agreement Software Advisors\u201d \nor \u201cESA\u201d). Microsoft offers direct sales programs targeted to reach small, medium, and corporate customers, in addition to \nthose offered through the resell er channel. A large network of partner advisors support many of these sales.  \nWe also sell commercial and consumer products and services directly to customers, such as cloud services, search, and \ngaming, through our digital marketplaces and online stores. Additionally, our Microsoft Experience Centers are designed to \nfacilitate deeper engagement with our partners and customers across industries.  \nDistributors and Resellers  \nOrganizations also license our products and services indirectly, primarily through l icensing solution partners (\u201cLSP\u201d), \ndistributors, value -added resellers (\u201cVAR\u201d), and retailers. Although each type of reselling partner may reach organizations \nof all sizes, LSPs are primarily engaged with large organizations, distributors resell primarily  to VARs, and VARs typically"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597234c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 24, "chroma:document": "24 reach small and medium organizations. ESAs are also typically authorized as LSPs and operate as resellers for our other \nvolume licensing programs. Microsoft Cloud Solution Provider is our main partner program for reselling clou d services.  \nWe distribute our retail packaged products primarily through independent non -exclusive distributors, authorized replicators, \nresellers, and retail outlets. Individual consumers obtain these products primarily through retail outlets. We distrib ute our \ndevices through third -party retailers. We have a network of field sales representatives and field support personnel that solicit \norders from distributors and resellers and provide product training and sales support.  \nOur Dynamics business solutions  are also licensed to enterprises through a global network of channel partners providing \nvertical solutions and specialized services.  \n  \nLICENSING OPTIONS  \nWe offer options for organizations that want to purchase our cloud services, on -premises software, a nd SA. We license \nsoftware to organizations under volume licensing agreements to allow the customer to acquire multiple licenses of products \nand services instead of having to acquire separate licenses through retail channels. We use different programs desi gned to \nprovide flexibility for organizations of various sizes. While these programs may differ in various parts of the world, genera lly \nthey include those discussed below.  \nSA conveys rights to new software and upgrades for perpetual licenses released ove r the contract period. It also provides \nsupport, tools, training, and other licensing benefits to help customers deploy and use software efficiently. SA is included \nwith certain volume licensing agreements and is an optional purchase with others.  \nVolume L icensing Programs  \nEnterprise Agreement  \nEnterprise Agreements offer large organizations a manageable volume licensing program that gives them the flexibility to \nbuy cloud services and software licenses under one agreement. Enterprise Agreements are design ed for medium or large \norganizations that want to license cloud services and on -premises software organization -wide over a three -year period. \nOrganizations can elect to purchase perpetual licenses or subscribe to licenses. SA is included.  \nMicrosoft Custom er Agreement  \nA Microsoft Customer Agreement is a simplified purchase agreement presented, accepted, and stored through a digital \nexperience. A Microsoft Customer Agreement is a non -expiring agreement that is designed to support all customers over \ntime, wh ether purchasing through a partner or directly from Microsoft.  \nMicrosoft Online Subscription Agreement"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597237e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 24, "chroma:document": "Microsoft Online Subscription Agreement  \nA Microsoft Online Subscription Agreement is designed for small and medium organizations that want to subscribe to, \nactivate, provision, and maintain cloud services seamlessly and directly via the web. The agreement allows customers to \nacquire monthly or a nnual subscriptions for cloud -based services.  \nMicrosoft Products and Services Agreement  \nMicrosoft Products and Services Agreements are designed for medium and large organizations that want to license cloud \nservices and on -premises software as needed, wit h no organization -wide commitment, under a single, non -expiring \nagreement. Organizations purchase perpetual licenses or subscribe to licenses. SA is optional for customers that purchase \nperpetual licenses.  \nOpen Value  \nOpen Value agreements are a simple, c ost-effective way to acquire the latest Microsoft technology. These agreements are \ndesigned for small and medium organizations that want to license cloud services and on -premises software over a three -\nyear period. Under Open Value agreements, organizations  can elect to purchase perpetual licenses or subscribe to licenses \nand SA is included."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59723b0-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 25, "chroma:document": "25 Select Plus  \nA Select Plus agreement is designed for government and academic organizations to acquire on -premises licenses at any \naffiliate or department level, while r ealizing advantages as one organization. Organizations purchase perpetual licenses \nand SA is optional.  \n  \nPartner Programs  \nThe Microsoft Cloud Solution Provider Program offers customers an easy way to license the cloud services they need in \ncombination wi th the value -added services offered by their systems integrator, managed services provider, or cloud reseller \npartner. Partners in this program can easily package their own products and services to directly provision, manage, and \nsupport their customer sub scriptions.  \nThe Microsoft Services Provider License Agreement allows hosting service providers and independent software vendors \nwho want to license eligible Microsoft software products to provide software services and hosted applications to their end \ncustomers. Partners license software over a three -year period and are billed monthly based on consumption.  \nThe Independent Software Vendor Royalty Program enables partners to integrate Microsoft products into other applications \nand then license the unified bu siness solution to their end users.  \nCUSTOMERS  \nOur customers include individual consumers, small and medium organizations, large global enterprises, public -sector \ninstitutions, Internet service providers, application developers, and OEMs.  Our practice is to ship our products promptly \nupon receipt of purchase orders from customers; consequently, backlog is not significant.  \nAVAILABLE INFORMATION  \nOur Internet address is www.microsoft.com. At our Investor Relations website, www.microsoft.com/investor, we make \navailable free of charge a variety of information for investors. Our goal is to maintain the Investor Relations website as a \nportal through wh ich investors can easily find or navigate to pertinent information about us, including:  \n\u2022 Our annual report on Form 10 -K, quarterly reports on Form 10 -Q, current reports on Form 8 -K, and any \namendments to those reports, as soon as reasonably practicable a fter we electronically file that material with \nor furnish it to the Securities and Exchange Commission (\u201cSEC\u201d) at www.sec.gov.  \n\u2022 Information on our business strategies, financial results, and metrics for investors.  \n\u2022 Announcements of investor conferences, speeches, and events at which our executives talk about our product, \nservice, and competitive strategies. Archives of these events are also available."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972446-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 25, "chroma:document": "service, and competitive strategies. Archives of these events are also available.  \n\u2022 Press releases on quarterly earnings, product and service annou ncements, legal developments, and \ninternational news.  \n\u2022 Corporate governance information including our articles of incorporation, bylaws, governance guidelines, \ncommittee charters, codes of conduct and ethics, global corporate social responsibility initia tives, and other \ngovernance -related policies.  \n\u2022 Other news and announcements that we may post from time to time that investors might find useful or \ninteresting.  \n\u2022 Opportunities to sign up for email alerts to have information pushed in real time.  \nWe publ ish a variety of reports and resources related to our Corporate Social Responsibility programs and progress on our \nReports Hub website, www.microsoft.com/corporate -responsibility/reports -hub, including reports on sustainability, \nresponsible sourcing, acces sibility, digital trust, and public policy engagement.  \nThe information found on these websites is not part of, or incorporated by reference into, this or any other report we file \nwith, or furnish to, the SEC. In addition to these channels, we use social m edia to communicate to the public. It is possible \nthat the information we post on social media could be deemed to be material to investors. We encourage investors, the \nmedia, and others interested in Microsoft to review the information we post on the socia l media channels listed on our \nInvestor Relations website."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59724b4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 27, "chroma:document": "27 MANAGEMENT\u2019S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF \nOPERATIONS  \nThe following Management\u2019s Discussion and Analysis of Financial Condition and Results of Operations (\u201cMD&A\u201d ) is \nintended to help the reader understand the results of operations and financial condition of Microsoft Corporation. MD&A is \nprovided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the \naccompanying Notes to Financial Statements. This section generally discusses the results of our operations for the year \nended June  30, 2023 compared to the year ended June  30, 2022. For a discussion of the year ended June  30, 2022 \ncompared to the year ended June  30, 20 21, please refer to, \u201cManagement\u2019s Discussion and Analysis of Financial Condition \nand Results of Operations\u201d in our Annual Report on Form 10 -K for the year ended June  30, 2022.  \nOVERVIEW  \nMicrosoft is a technology company whose mission is to empower every person and every organization on the planet to \nachieve more. We strive to create local opportunity, growth, and impact in every country around the world. We are creating \nthe platforms and tools, powered by artificial intelligence (\u201cAI\u201d), that deliver bette r, faster, and more effective solutions to \nsupport small and large business competitiveness, improve educational and health outcomes, grow public -sector efficiency, \nand empower human ingenuity.  \nWe generate revenue by offering a wide range of cloud -based s olutions, content, and other services to people and \nbusinesses; licensing and supporting an array of software products; delivering relevant online advertising to a global \naudience; and designing and selling devices. Our most significant expenses are relate d to compensating employees; \nsupporting and investing in our cloud -based services, including datacenter operations; designing, manufacturing, marketing, \nand selling our other products and services; and income taxes.  \nHighlights from fiscal year 2023 compar ed with fiscal year 2022 included:  \n\u2022 Microsoft Cloud revenue increased 22% to $111.6  billion.  \n\u2022 Office Commercial products and cloud services revenue increased 10% driven by Office 365 Commercial \ngrowth of 13%."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59724e6-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 27, "chroma:document": "growth of 13%.  \n\u2022 Office Consumer products and cloud servi ces revenue increased 2% and Microsoft 365 Consumer subscribers \nincreased to 67.0  million.  \n\u2022 LinkedIn revenue increased 10%.  \n\u2022 Dynamics products and cloud services revenue increased 16% driven by Dynamics 365 growth of 24%.  \n\u2022 Server products and cloud s ervices revenue increased 19% driven by Azure and other cloud services growth \nof 29%.  \n\u2022 Windows original equipment manufacturer licensing (\u201cWindows OEM\u201d) revenue decreased 25%.  \n\u2022 Devices revenue decreased 24%.  \n\u2022 Windows Commercial products and cloud services revenue increased 5%.  \n\u2022 Xbox content and services revenue decreased 3%.  \n\u2022 Search and news advertising revenue excluding traffic acquisition costs increased 11%.  \nIndustry Trends  \nOur industry is dynamic and highly competitive, with frequent changes in both technologies and business models. Each \nindustry shift is an opportunity to conceive new products, new technologies, or new ideas that can further transform the \nindustry and our business. At Microsoft, we pu sh the boundaries of what is possible through a broad range of research and \ndevelopment activities that seek to identify and address the changing demands of customers and users, industry trends, \nand competitive forces.  \n  \nEconomic Conditions, Challenges, and Risks  \nThe markets for software, devices, and cloud -based services are dynamic and highly competitive. Our competitors are \ndeveloping new software and devices, while also deploying competing cloud -based services for con sumers and businesses."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972518-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 28, "chroma:document": "28 The devices and form factors customers prefer evolve rapidly, influencing how users access services in the cloud and, in \nsome cases, the user\u2019s choice of which suite of cloud -based services to use. Aggregate demand for our software, services, \nand devices is also correlated to global macroeconomic and geopolitical factors, which remain dynamic. We must continue \nto evolve and adapt over an extended time in pace with this changing environment.  \nThe investments we are making in cloud and AI infrastructure and devices will continue to increase our operating costs and \nmay decrease our operating margins. We continue to identify and evaluate opportunities to expand our datacenter locations \nand increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for \nAI services. Our datacenters depend on the availability of permitted and buildable land, predictable energy, networking \nsupplies, and servers, including graphics processing units (\u201cGPUs\u201d) an d other components. Our devices are primarily \nmanufactured by third -party contract manufacturers. For the majority of our products, we have the ability to use other \nmanufacturers if a current vendor becomes unavailable or unable to meet our requirements. H owever, some of our products \ncontain certain components for which there are very few qualified suppliers. Extended disruptions at these suppliers could \nimpact our ability to manufacture devices on time to meet consumer demand.  \nOur success is highly depend ent on our ability to attract and retain qualified employees. We hire a mix of university and \nindustry talent worldwide. We compete for talented individuals globally by offering an exceptional working environment, \nbroad customer reach, scale in resources, the ability to grow one\u2019s career across many different products and businesses, \nand competitive compensation and benefits.  \nOur international operations provide a significant portion of our total revenue and expenses. Many of these revenue and \nexpenses are  denominated in currencies other than the U.S. dollar. As a result, changes in foreign exchange rates may \nsignificantly affect revenue and expenses. Fluctuations in the U.S. dollar relative to certain foreign currencies reduced \nreported revenue and expense s from our international operations in fiscal year 2023.  \nOn January  18, 2023, we announced decisions we made to align our cost structure with our revenue and customer demand,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597254a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 28, "chroma:document": "prioritize our investments in strategic areas, and consolidate office space. As a result, we recorded a $1.2  billion charge in \nthe second quarter of fiscal year 2023 (\u201cQ2 charge\u201d), which included employee severance expenses of $800  million, \nimpairment charges resulting from changes to our hardware portfolio, and costs related to lease  consolidation activities. \nFirst, we reduced our overall workforce by approximately 10,000 jobs through the third quarter of fiscal year 2023 related to  \nthe Q2 charge, which represents less than 5% of our total employee base. While we eliminated roles in s ome areas, we will \ncontinue to hire in key strategic areas. Second, we are allocating both our capital and talent to areas of secular growth and  \nlong-term competitiveness, while divesting in other areas. Third, we are consolidating our leases to create hig her density \nacross our workspaces, which impacted our financial results through the remainder of fiscal year 2023, and we may make \nsimilar decisions in future periods as we continue to evaluate our real estate needs.  \nRefer to Risk Factors in our fiscal ye ar 2023 Form 10 -K for a discussion of these factors and other risks.  \nSeasonality  \nOur revenue fluctuates quarterly and is generally higher in the second and fourth quarters of our fiscal year. Second quarter  \nrevenue is driven by corporate year -end spendin g trends in our major markets and holiday season spending by consumers, \nand fourth quarter revenue is driven by the volume of multi -year on -premises contracts executed during the period.   \nChange in Accounting Estimate  \nIn July 2022, we completed an assessm ent of the useful lives of our server and network equipment. Due to investments in \nsoftware that increased efficiencies in how we operate our server and network equipment, as well as advances in \ntechnology, we determined we should increase the estimated us eful lives of both server and network equipment from four \nyears to six years. This change in accounting estimate was effective beginning fiscal year 2023. Based on the carrying \namount of server and network equipment included in property and equipment, net as of June  30, 2022, the effect of this"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972586-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 28, "chroma:document": "change in estimate for fiscal year 2023 was an increase in operating income of $3.7  billion and net income of $3.0  billion, \nor $0.40 per both basic and diluted share.  \nReportable Segments  \nWe report our financial performance based on the following segments: Productivity and Business Processes, Intelligent \nCloud, and More Personal Computing. The segment amounts included in MD&A are presented on a basis consistent with \nour internal management reporting. We have recast certain prior period amounts to conform to the way we internally manage \nand monitor our business."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59725c2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 29, "chroma:document": "29 Additional information on our reportable segments is contained in Note 19 \u2013 Segment Information and Geographic Data of \nthe Notes to  Financial Statements.  \nMetrics  \nWe use metrics in assessing the performance of our business and to make informed decisions regarding the allocation of \nresources. We disclose metrics to enable investors to evaluate progress against our ambitions, provide t ransparency into \nperformance trends, and reflect the continued evolution of our products and services. Our commercial and other business \nmetrics are fundamentally connected based on how customers use our products and services. The metrics are disclosed in \nthe MD&A or the Notes to Financial Statements. Financial metrics are calculated based on financial results prepared in \naccordance with accounting principles generally accepted in the United States of America (\u201cGAAP\u201d), and growth \ncomparisons relate to the c orresponding period of last fiscal year.  \nIn the first quarter of fiscal year 2023, we made updates to the presentation and method of calculation for certain metrics, \nmost notably expanding our Surface metric into a broader Devices metric to incorporate ad ditional revenue streams, along \nwith other minor changes to align with how we manage our businesses.  \nCommercial  \nOur commercial business primarily consists of Server products and cloud services, Office Commercial, Windows \nCommercial, the commercial portio n of LinkedIn, Enterprise Services, and Dynamics. Our commercial metrics allow \nmanagement and investors to assess the overall health of our commercial business and include leading indicators of future \nperformance.  \n  \nCommercial remaining performance obliga tion Commercial portion of revenue allocated to remaining \nperformance obligations, which includes unearned revenue \nand amounts that will be invoiced and recognized as \nrevenue in future periods  \n    \nMicrosoft Cloud revenue  Revenue from Azure and other cloud services, Office 365 \nCommercial, the commercial portion of LinkedIn, Dynamics \n365, and other commercial cloud properties  \n    \nMicrosoft Cloud gross margin percentage  Gross margin percentage for our Microsoft Cloud business  \n  \nProductivity and Business Processes and Intelligent Cloud  \nMetrics related to our Productivity and Business Processes and Intelligent Cloud segments assess the health of our core \nbusinesses within these segments. The metrics reflect our cloud and on -premis es product strategies and trends.  \n  \nOffice Commercial products and cloud services revenue \ngrowth  Revenue from Office Commercial products and cloud \nservices (Office 365 subscriptions, the Office 365 portion of"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59725f4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 29, "chroma:document": "services (Office 365 subscriptions, the Office 365 portion of \nMicrosoft 365 Commercial subscriptions, and Of fice \nlicensed on -premises), comprising Office, Exchange, \nSharePoint, Microsoft Teams, Office 365 Security and \nCompliance, Microsoft Viva, and Microsoft 365 Copilot  \n    \nOffice Consumer products and cloud services revenue \ngrowth  Revenue from Office Consumer products and cloud \nservices, including Microsoft 365 Consumer subscriptions, \nOffice licensed on -premises, and other Office services  \n    \nOffice 365 Commercial seat growth  The number of Office 365 Commercial seats at end of \nperiod where seats are paid users covered by an Office 365 \nCommercial subscription  \n    \nMicrosoft 365 Consumer subscribers  The number of Microsoft 365 Consumer subscribers at end \nof period  \n    \nDynamics products and cloud services revenue growth  Revenue from Dynamics products and cloud services, \nincluding Dynamics 365, comprising a set of intelligent, \ncloud -based applications across ERP, CRM (including \nCustomer Insights), Power Apps, and Power Automate; \nand on -premises ERP and CRM applications"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597261c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 30, "chroma:document": "30     \nLinkedIn revenue growth  Reve nue from LinkedIn, including Talent Solutions, \nMarketing Solutions, Premium Subscriptions, and Sales \nSolutions  \n    \nServer products and cloud services revenue growth  Revenue from Server products and cloud services, \nincluding Azure and other cloud services; SQL Server, \nWindows Server, Visual Studio, System Center, and related \nClient Access Licenses (\u201cCALs\u201d); and Nuance and GitHub  \nMore Personal Computing  \nMetrics related to our More Personal Computing segment assess the performance of key lines of business within this \nsegment. These metrics provide strategic product insights which allow us to assess the performance across our commercial \nand consumer busines ses. As we have diversity of target audiences and sales motions within the Windows business, we \nmonitor metrics that are reflective of those varying motions.  \n  \nWindows OEM revenue growth  Revenue from sales of Windows Pro and non -Pro licenses \nsold through the OEM channel  \n    \nWindows Commercial products and cloud services \nrevenue growth  Revenue from Windows Commercial products and cloud \nservices, comprising volume licensing of the Windows \noperating system, Windows cloud services, and other \nWindows commercial offerings  \n    \nDevices revenue growth  Revenue from Devices, including Surface, HoloLens, and \nPC accessories  \nXbox content and services revenue growth  Revenue from Xbox content and services, comprising first - \nand third -party content (including games and in -game \ncontent), Xbox Game Pass and other subscriptions, Xbox \nCloud Gaming, advertising, third -party disc royalties, and \nother cloud services  \n    \nSearch and news advertising revenue (ex TAC) growth  Revenue from search and news advertising excluding traffic \nacquisition costs (\u201cTAC\u201d) paid to Bing Ads network \npublishers and news partners  \nSUMMARY RESULTS OF OPERATIONS  \n  \n(In millions,  except  percentages  and per share  amounts)  2023  2022  Percentage  \nChange    \n        \nRevenue  $  211,915   $  198,270    7%  \nGross margin   146,052    135,620    8%  \nOperating income   88,523    83,383    6%  \nNet income   72,361    72,738    (1)%"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597264e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 30, "chroma:document": "Diluted earnings per share   9.68   9.65   0%  \n        \nAdjusted gross margin (non -GAAP)   146,204    135,620    8%  \nAdjusted operating income (non -GAAP)   89,694    83,383    8%  \nAdjusted net income (non -GAAP)   73,307    69,447    6%  \nAdjusted diluted earnings per share (non -GAAP)   9.81   9.21   7%    \nAdjusted gross margin, operating income, net income, and diluted earnings per share (\u201cEPS\u201d) are non -GAAP financial \nmeasures. Current year non -GAAP financial measures exclude the impact of the Q2 charge, which includes employee \nseverance expenses, impairmen t charges resulting from changes to our hardware portfolio, and costs related to lease \nconsolidation activities. Prior year non -GAAP financial measures exclude the net  income tax benefit related to transfer of \nintangible properties in the first quarter of fiscal year 2022. Refer to Note 12 \u2013 Income Taxes of the Notes to Financial \nStatements for further discussion. Refer to the Non -GAAP Financial Measures section below for a reconciliation of our \nfinancial results reported in accordance with GAAP to non -GAAP  financial results."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972680-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 31, "chroma:document": "31 Fiscal Year 2023 Compared with Fiscal Year 2022  \nRevenue increased $13.6  billion or 7% driven by growth in Intelligent Cloud and Productivity and Business Processes, offset \nin part by a decline in More Personal Computing. Intelligent C loud revenue increased driven by Azure and other cloud \nservices. Productivity and Business Processes revenue increased driven by Office 365 Commercial and LinkedIn. More \nPersonal Computing revenue decreased driven by Windows and Devices.  \nCost of revenue i ncreased $3.2  billion or 5% driven by growth in Microsoft Cloud, offset in part by the change in accounting \nestimate.  \nGross margin increased $10.4  billion or 8% driven by growth in Intelligent Cloud and Productivity and Business Processes \nand the change i n accounting estimate, offset in part by a decline in More Personal Computing.  \n\u2022 Gross margin percentage increased slightly. Excluding the impact of the change in accounting estimate, gross \nmargin percentage decreased 1 point driven by declines in Intelli gent Cloud and More Personal Computing, \noffset in part by sales mix shift between our segments.  \n\u2022 Microsoft Cloud gross margin percentage increased 2 points to 72%. Excluding the impact of the change in \naccounting estimate, Microsoft Cloud gross margin pe rcentage decreased slightly driven by a decline in Azure \nand other cloud services and sales mix shift to Azure and other cloud services, offset in part by improvement \nin Office 365 Commercial.  \n  \nOperating expenses increased $5.3  billion or 10% driven by e mployee severance expenses, 2 points of growth from the \nNuance and Xandr acquisitions, investments in cloud engineering, and LinkedIn.  \nOperating income increased $5.1  billion or 6% driven by growth in Productivity and Business Processes and Intelligent \nCloud and the change in accounting estimate, offset in part by a decline in More Personal Computing.  \nRevenue, gross margin, and operating income included an unfavorable foreign currency impact of 4%, 4%, and 6%, \nrespectively. Cost of revenue and operating expenses both included a favorable foreign currency impact of 2%.  \nCurrent year gross margin, operati ng income, net income, and diluted EPS were negatively impacted by the Q2 charge,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59726b2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 31, "chroma:document": "which resulted in decreases of $152  million, $1.2  billion, $946  million, and $0.13, respectively. Prior year net income and \ndiluted EPS were positively impacted by the net ta x benefit related to the transfer of intangible properties, which resulted in \nan increase to net income and diluted EPS of $3.3  billion and $0.44, respectively.  \nSEGMENT RESULTS OF OPERATIONS  \n  \n(In millions, except percentages)  2023  2022  Percentage  \nChange    \n        \nRevenue        \n        \nProductivity and Business Processes  $ 69,274   $ 63,364    9%  \nIntelligent Cloud   87,907    74,965    17%  \nMore Personal Computing   54,734    59,941    (9)%         \nTotal  $  211,915   $  198,270    7%          \n        \nOperating Income        \n        \nProductivity and Business Processes  $ 34,189   $ 29,690    15%  \nIntelligent Cloud   37,884    33,203    14%  \nMore Personal Computing   16,450    20,490    (20)%         \nTotal  $ 88,523   $ 83,383    6%          \nReportable Segments  \nFiscal Year 2023 Compared with Fiscal Year 2022  \nProductivity and Business Processes  \nRevenue increased $5.9  billion or 9%.  \n\u2022 Office Commercial products and cloud services revenue increased $3.7  billion or 10%. Office 365 Commercial \nrevenue grew 13% with seat growth of 11%, driven by small and medium business and frontline worker \nofferings, as well as growth in revenue per user. Office Commercial products revenue declined 21% driven by \ncontinued customer shift to cloud offerings."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59726e4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 32, "chroma:document": "32 \u2022 Office Consumer products and cloud services revenue increased $140  million or 2%. Microsoft 365 Consumer \nsubscribers grew 12% to 67.0  million.  \n\u2022 LinkedIn revenue increased $1.3  billion or 10% driven by Talent Solutions.  \n\u2022 Dynamics products and cloud serv ices revenue increased $750  million or 16% driven by Dynamics 365 growth \nof 24%.  \nOperating income increased $4.5  billion or 15%.  \n\u2022 Gross margin increased $5.8  billion or 12% driven by growth in Office 365 Commercial and LinkedIn, as well \nas the change in  accounting estimate. Gross margin percentage increased. Excluding the impact of the change \nin accounting estimate, gross margin percentage increased slightly driven by improvement in Office 365 \nCommercial, offset in part by sales mix shift to cloud offeri ngs.  \n  \n\u2022 Operating expenses increased $1.3  billion or 7% driven by investment in LinkedIn and employee severance \nexpenses.  \nRevenue, gross margin, and operating income included an unfavorable foreign currency impact of 5%, 5%, and 8%, \nrespectively.  \nIntelligent Cloud  \nRevenue increased $12.9  billion or 17%.  \n\u2022 Server products and cloud services revenue increased $12.6  billion or 19% driven by Azure and other cloud \nservices. Azure and other cloud services revenue grew 29% driven by growth in our consumption -based \nservices. Server products revenue decreased 1%.  \n\u2022 Enterprise Services revenue increased $315  million or 4% driven by growth in Enterprise Support Services, \noffset in part by a decline in Industry Solutions (formerly Microsoft Consulting Services).  \nOperating income increased $4.7  billion or 14%.  \n\u2022 Gross margin increased $8.9  billion or 17% driven by growth in Azure and other cloud services and the change \nin accounting estimate. Gross margin percentage decreased slightly. Excluding the impact of the  change in \naccounting estimate, gross margin percentage decreased 3 points driven by sales mix shift to Azure and other \ncloud services and a decline in Azure and other cloud services.  \n\u2022 Operating expenses increased $4.2  billion or 21% driven by investment s in Azure, 4 points of growth from the"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972716-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 32, "chroma:document": "Nuance acquisition, and employee severance expenses.  \nRevenue, gross margin, and operating income included an unfavorable foreign currency impact of 4%, 4%, and 6%, \nrespectively. Operating expenses included a favorab le foreign currency impact of 2%.  \nMore Personal Computing  \nRevenue decreased $5.2  billion or 9%.  \n\u2022 Windows revenue decreased $3.2  billion or 13% driven by a decrease in Windows OEM. Windows OEM \nrevenue decreased 25% as elevated channel inventory levels continued to drive additional weakness beyond \ndeclining PC demand. Windows Commercial products and clo ud services revenue increased 5% driven by \ndemand for Microsoft 365.  \n\u2022 Devices revenue decreased $1.8  billion or 24% as elevated channel inventory levels continued to drive \nadditional weakness beyond declining PC demand.  \n\u2022 Gaming revenue decreased $764  million or 5% driven by declines in Xbox hardware and Xbox content and \nservices. Xbox hardware revenue decreased 11% driven by lower volume and price of consoles sold. Xbox \ncontent and services revenue decreased 3% driven by a  decline in first -party content, offset in part by growth \nin Xbox Game Pass.  \n\u2022 Search and news advertising revenue increased $617  million or 5%. Search and news advertising revenue \nexcluding traffic acquisition costs increased 11% driven by higher search volume and the Xandr acquisition."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972748-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 33, "chroma:document": "33 Operating income decreased $4.0  billion or 20%.  \n\u2022 Gross margin decreased $4.2  billion or 13% driven by declines in Windows and Devices. Gross margin \npercentage decreased driven by a decline in Devices.  \n\u2022 Operating expen ses decreased $195  million or 2% driven by a decline in Devices, offset in part by investments \nin Search and news advertising, including 2 points of growth from the Xandr acquisition.  \nRevenue, gross margin, and operating income included an unfavorable for eign currency impact of 3%, 4%, and 6%, \nrespectively. Operating expenses included a favorable foreign currency impact of 2%.  \n  \nOPERATING EXPENSES  \nResearch and Development  \n  \n(In millions, except percentages)  2023  2022  Percentage  \nChange    \n        \nResearch and development  $   27,195\u2004   $   24,512\u2004    11%  \nAs a percent of revenue   13%\u2009    12%\u2009    1ppt    \nResearch and development expenses include payroll, employee benefits, stock -based compensation expense, and other \nheadcount -related expenses associated with product development. Research and development expenses also include third -\nparty development and pro gramming costs and the amortization of purchased software code and services content.  \nFiscal Year 2023 Compared with Fiscal Year 2022  \nResearch and development expenses increased $2.7  billion or 11% driven by investments in cloud engineering and \nLinkedIn.  \nSales and Marketing  \n  \n(In millions, except percentages)  2023  2022  Percentage  \nChange    \n        \nSales and marketing  $   22,759\u2004   $   21,825\u2004    4%  \nAs a percent of revenue   11%\u2009    11%\u2009    0ppt    \nSales and marketing expenses include payroll, employee benefits, stock -based compensation expense, and other \nheadcount -related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, trade \nshows, seminars, and othe r programs.  \nFiscal Year 2023 Compared with Fiscal Year 2022"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597277a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 33, "chroma:document": "Fiscal Year 2023 Compared with Fiscal Year 2022  \nSales and marketing expenses increased $934  million or 4% driven by 3 points of growth from the Nuance and Xandr \nacquisitions and investments in commercial sales, offset in part by a decline in Windows advertising. Sales and marketing \nincluded a favorable foreign currency impact of 2%.  \nGeneral and Administrative  \n  \n(In millions, except percentages)  2023  2022  Percentage  \nChange    \n        \nGeneral and administrative  $   7,575\u2004   $   5,900\u2004    28%  \nAs a percent of revenue   4%\u2009   3%\u2009   1ppt    \nGeneral and administrative expenses include payroll, employee benefits, stock -based compensation expense, employee \nseverance expense incurred as part of a corporate program, and other headcount -related expenses associated with finance, \nlegal, facilities, c ertain human resources and other administrative personnel, certain taxes, and legal and other \nadministrative fees."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59727ac-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 34, "chroma:document": "34 Fiscal Year 2023 Compared with Fiscal Year 2022  \nGeneral and administrative expenses increased $1.7  billion or 28% driven by employee severa nce expenses and a charge \nrelated to a non -public preliminary draft decision provided by the Irish Data Protection Commission. General and \nadministrative included a favorable foreign currency impact of 2%.  \n  \nOTHER INCOME (EXPENSE), NET  \nThe components of other income (expense), net were as follows:  \n  \n(In millions)        \n      \nYear Ended June  30, 2023  2022  \n      \nInterest and dividends income  $   \u20042,994   $   \u20042,094   \nInterest expense   (1,968 )  (2,063 ) \nNet recognized gains on investments   260   461  \nNet losses on derivatives   (456)  (52) \nNet gains (losses) on foreign currency remeasurements   181   (75) \nOther, net   (223)  (32)     \nTotal  $ 788  $ 333        \nWe use derivative instruments to manage risks related to foreign currencies, equity prices, interest rates, and credit; \nenhance investment returns; and facilitate portfolio diversification. Gains and losses from changes in fair values of \nderivatives that a re not designated as hedging instruments are primarily recognized in other income (expense), net.  \nFiscal Year 2023 Compared with Fiscal Year 2022  \nInterest and dividends income increased due to higher yields, offset in part by lower portfolio balances. In terest expense \ndecreased due to a decrease in outstanding long -term debt due to debt maturities. Net recognized gains on investments \ndecreased due to lower gains on equity securities and higher losses on fixed income securities. Net losses on derivatives \nincreased due to losses related to managing strategic investments.  \nINCOME TAXES  \nEffective Tax Rate  \nOur effective tax rate for fiscal years 2023 and 2022 was 19% and 13%, respectively.  The increase in our effective tax rate \nwas primarily due to a $3.3  billion net income tax benefit in the first quarter of fiscal year 2022 related to the transfer of \nintan gible properties and a decrease in tax benefits relating to stock -based compensation."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59727d4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 34, "chroma:document": "In the first quarter of fiscal year 2022, we transferred certain intangible properties from our Puerto Rico subsidiary to the  \nU.S. The transfer of intangible properties resulted in a $3.3  billion net income tax benefit in the first quarter of fiscal year \n2022, as the value of future U.S. tax deductions exceeded the current tax liability from the U.S. global intangible low -taxed \nincome tax.  \nOur effective tax rate was lowe r than the U.S. federal statutory rate, primarily due to earnings taxed at lower rates in foreign \njurisdictions resulting from producing and distributing our products and services through our foreign regional operations \ncenter in Ireland.  \nThe mix of income before income taxes between the U.S. and foreign countries impacted our effective tax rate as a result \nof the geographic distribution of, and customer demand for, our products and services. In fiscal year 2023, our U.S. income \nbefore inco me taxes was $52.9  billion and our foreign income before income taxes was $36.4  billion. In fiscal year 2022, \nour U.S. income before income taxes was $47.8  billion and our foreign income before income taxes was $35.9  billion."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972806-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 35, "chroma:document": "35 Uncertain Tax Positions  \nWe settled a portion of the Internal Revenue Service (\u201cIRS\u201d) audit for tax years 2004 to 2006 in fiscal year 2011. In February \n2012, the IRS withdrew its 2011 Revenue Agents Report related to unresolved issues for tax years 2004 to 2006 and \nreopened the audi t phase of the examination. We also settled a portion of the IRS audit for tax years 2007 to 2009 in fiscal \nyear 2016, and a portion of the IRS audit for tax years 2010 to 2013 in fiscal year 2018. In the second quarter of fiscal yea r \n2021, we settled an a dditional portion of the IRS audits for tax years 2004 to 2013 and made a payment of $1.7  billion, \nincluding tax and interest. We remain under audit for tax years 2004 to 2017.  \nAs of June  30, 2023, the primary unresolved issues for the IRS audits relate t o transfer pricing, which could have a material \nimpact in our consolidated financial statements when the matters are resolved. We believe our allowances for income tax \ncontingencies are adequate. We have not received a proposed assessment for the unresolve d key transfer pricing issues. \nWe do not expect a final resolution of these issues in the next 12 months.  Based on the information currently available, we \ndo not anticipate a significant increase or decrease to our tax contingencies for these issues within  the next 12 months.  \nWe are subject to income tax in many jurisdictions outside the U.S. Our operations in certain jurisdictions remain subject to  \nexamination for tax years 1996 to 2022, some of which are currently under audit by local tax authorities. Th e resolution of \neach of these audits is not expected to be material to our consolidated financial statements.  \nNON -GAAP FINANCIAL MEASURES  \nAdjusted gross margin, operating income, net income, and diluted EPS are non -GAAP financial measures. Current year \nnon-GAAP financial measures exclude the impact of the Q2 charge, which includes employee severance expenses, \nimpairment charges resulting from changes to our hardware portfolio, and costs related to lease consolidation activities."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972842-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 35, "chroma:document": "Prior year non -GAAP financ ial measures exclude the net income tax benefit related to transfer of intangible properties in \nthe first quarter of fiscal year 2022. We believe these non -GAAP measures aid investors by providing additional insight into \nour operational performance and hel p clarify trends affecting our business. For comparability of reporting, management \nconsiders non -GAAP measures in conjunction with GAAP financial results in evaluating business performance. These non -\nGAAP financial measures presented should not be conside red a substitute for, or superior to, the measures of financial \nperformance prepared in accordance with GAAP.  \nThe following table reconciles our financial results reported in accordance with GAAP to non -GAAP financial results:  \n  \n(In millions, except perc entages and per share amounts)  2023  2022  Percentage  \nChange    \nGross margin  $ 146,052   $ 135,620    8%  \nSeverance, hardware -related impairment, and lease consolidation costs   152   0   *        \nAdjusted gross margin (non -GAAP)  $  146,204   $   135,620    8%          \n        \nOperating income  $ 88,523   $ 83,383    6%  \nSeverance, hardware -related impairment, and lease consolidation costs   1,171    0   *        \nAdjusted operating income (non -GAAP)  $ 89,694   $ 83,383    8%          \n        \nNet income  $ 72,361   $ 72,738    (1)%   \nSeverance, hardware -related impairment, and lease consolidation costs   946   0   *  \nNet income tax benefit related to transfer of intangible properties   0   (3,291 )  *        \nAdjusted net income (non -GAAP)  $ 73,307   $ 69,447    6%          \n        \nDiluted earnings per share  $ 9.68  $ 9.65   0%  \nSeverance, hardware -related impairment, and lease consolidation costs   0.13   0   *  \nNet income tax benefit related to transfer of intangible properties   0   (0.44 )  *"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597287e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 35, "chroma:document": "Adjusted diluted earnings per share (non -GAAP)  $ 9.81  $ 9.21   7%          \n* Not meaningful."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59728b0-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 36, "chroma:document": "36 LIQUIDITY AND CAPITAL RESOURCES  \nWe expect existing cash, cash equivalents, short -term investments, cash flows from operations, and access to capital \nmarkets to continue to be sufficient to fund our operating activities and cash commitments for investing and financing \nactivities, such as dividends, share repurchases, debt maturities, material capital expenditures, and the transition tax related \nto the Tax Cuts and Jobs Act (\u201cTCJA\u201d), for at least the next 12 months and thereafter for the foreseeable future.  \nCash, Cash Equivalents, and Inve stments  \nCash, cash equivalents, and short -term investments totaled $111.3  billion and $104.8  billion as of June  30, 2023 and 2022, \nrespectively. Equity investments were $9.9  billion and $6.9  billion as of June  30, 2023 and 2022, respectively. Our short -\nterm investments are primarily intended to facilitate liquidity and capital preservation. They consist predominantly of highly \nliquid investment -grade fixed -income securities, diversified among industries and individual issuers. The investments are \npredomina ntly U.S. dollar -denominated securities, but also include foreign currency -denominated securities to diversify risk. \nOur fixed -income investments are exposed to interest rate risk and credit risk. The credit risk and average maturity of our \nfixed -income po rtfolio are managed to achieve economic returns that correlate to certain fixed -income indices. The \nsettlement risk related to these investments is insignificant given that the short -term investments held are primarily highly \nliquid investment -grade fixed -income securities.  \nValuation  \nIn general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine the  \nfair value of our financial instruments. This pricing methodology applies to our Level  1 investment s, such as U.S. government \nsecurities, common and preferred stock, and mutual funds. If quoted prices in active markets for identical assets or liabilit ies \nare not available to determine fair value, then we use quoted prices for similar assets and liabilit ies or inputs other than the \nquoted prices that are observable either directly or indirectly. This pricing methodology applies to our Level  2 investments,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59728e2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 36, "chroma:document": "such as commercial paper, certificates of deposit, U.S. agency securities, foreign government bonds, mortgage - and asset -\nbacked securities, corporate notes and bonds, and municipal securities. Level  3 investments are valued using internally -\ndeveloped models with unobservable inputs. Assets and liabilities measured at fair value on a recurring basis using \nunobservable inputs are an immaterial portion of our portfolio.  \nA majority of our investments are priced by pricing vendors and are generally Level  1 or Level  2 investments as these \nvendors either provide a quoted market price in an active market or use o bservable inputs for their pricing without applying \nsignificant adjustments. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by \nour pricing vendors, or when a broker price is more reflective of fair values i n the market in which the investment trades. \nOur broker -priced investments are generally classified as Level  2 investments because the broker prices these investments \nbased on similar assets without applying significant adjustments. In addition, all our br oker-priced investments have a \nsufficient level of trading volume to demonstrate that the fair values used are appropriate for these investments. Our fair \nvalue processes include controls that are designed to ensure appropriate fair values are recorded. Th ese controls include \nmodel validation, review of key model inputs, analysis of period -over-period fluctuations, and independent recalculation of \nprices where appropriate.  \nCash Flows  \nCash from operations decreased $1.5  billion to $87.6  billion for fiscal year 2023, mainly due to an increase in cash paid to \nemployees and suppliers and cash used to pay income taxes, offset in part by an increase in cash received from customers. \nCash used in financing decreased $14.9  billion to $43.9  billion for fiscal year 2 023, mainly due to a $10.5  billion decrease \nin common stock repurchases and a $6.3  billion decrease in repayments of debt, offset in part by a $1.7  billion increase in \ndividends paid. Cash used in investing decreased $7.6  billion to $22.7  billion for fisca l year 2023, due to a $20.4  billion"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972914-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 36, "chroma:document": "decrease in cash used for acquisitions of companies, net of cash acquired, and purchases of intangible and other assets, \noffset in part by a $8.2  billion decrease in cash from net investment purchases, sales, and maturit ies, and a $4.2  billion \nincrease in additions to property and equipment.  \n  \nDebt Proceeds  \nWe issue debt to take advantage of favorable pricing and liquidity in the debt markets, reflecting our credit rating and the \nlow interest rate environment. The proce eds of these issuances were or will be used for general corporate purposes, which \nmay include, among other things, funding for working capital, capital expenditures, repurchases of capital stock, \nacquisitions, and repayment of existing debt. Refer to Note 11 \u2013 Debt of the Notes to Financial Statements for further \ndiscussion."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972946-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 37, "chroma:document": "37 Unearned Revenue  \nUnearned revenue comprises mainly unearned revenue related to volume licensing programs, which may include Software \nAssurance (\u201cSA\u201d) and cloud services. Unearned reve nue is generally invoiced annually at the beginning of each contract \nperiod for multi -year agreements and recognized ratably over the coverage period. Unearned revenue also includes \npayments for other offerings for which we have been paid in advance and ea rn the revenue when we transfer control of the \nproduct or service. Refer to Note 1 \u2013 Accounting Policies of the Notes to Financial Statements for further discussion.  \nThe following table outlines the expected future recognition of unearned revenue as of Ju ne 30, 2023:  \n  \n(In millions)      \n    \nThree Months Ending    \n    \nSeptember  30, 2023  $ 19,673   \nDecember  31, 2023   15,600   \nMarch  31, 2024   10,801   \nJune  30, 2024   4,827   \nThereafter   2,912     \nTotal  $   53,813       \nIf our customers choose to license cloud -based versions of our products and services rather than licensing transaction -\nbased products and services, the associated revenue will shift from being recognized at the time of the transaction to being \nrecognized o ver the subscription period or upon consumption, as applicable. Refer to Note 13 \u2013 Unearned Revenue of the \nNotes to Financial Statements for further discussion.  \nMaterial Cash Requirements and Other Obligations  \nContractual Obligations  \nThe following table  summarizes the payments due by fiscal year for our outstanding contractual obligations as of June  30, \n2023:  \n  \n(In millions)  2024  Thereafter  Total    \n        \nLong -term debt: (a)       \nPrincipal payments  $ 5,250   $ 47,616   $ 52,866   \nInterest payments   1,379    19,746    21,125   \nConstruction commitments (b)  12,237    1,218    13,455   \nOperating and finance leases, including imputed interest (c)  5,988    73,852    79,840"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972978-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 37, "chroma:document": "Purchase commitments (d)  64,703    3,115    67,818         \nTotal  $   89,557   $   145,547   $   235,104           \n(a) Refer to Note 11 \u2013 Debt of the Notes to Financial Statements .  \n(b) Refer to Note 7 \u2013 Property and Equipment of the Notes to Financial Statements .  \n(c) Refer to Note 14 \u2013 Leases of the Notes to Financial Statements .  \n(d) Purchase commitments primarily relate to datacenters and include open purchase orders and take -or-pay contracts \nthat are not presented as construction commitments above.   \nIncome Taxes  \nAs a result of the TCJA, we are required to pay a one -time transition t ax on deferred foreign income not previously subject \nto U.S. income tax. Under the TCJA, the transition tax is payable in interest -free installments over eight years, with 8% due \nin each of the first five years, 15% in year six, 20% in year seven, and 25% in year eight. We have paid transition tax of \n$7.7 billion, which included $1.5  billion for fiscal year 2023. The remaining transition tax of $10.5  billion is payable over the \nnext three years, with $2.7  billion payable within 12 months.  \nIn fiscal year 20 23, we paid cash tax of $4.8  billion due to the mandatory capitalization for tax purposes of research and \ndevelopment expenditures enacted by the TCJA and effective on July  1, 2022."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59729aa-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 38, "chroma:document": "38 Share Repurchases  \nDuring fiscal years 2023 and 2022, we repurchased 69  million shares and 95  million shares of our common stock for \n$18.4  billion and $28.0  billion, respectively, through our share repurchase programs. All repurchases were made using cash \nresources. As of June  30, 2023, $22.3  billion remained of our $60  billion  share repurchase program. Refer to Note 16 \u2013 \nStockholders\u2019 Equity of the Notes to Financial Statements for further discussion.  \nDividends  \nDuring fiscal year 2023 and 2022, our Board of Directors declared quarterly dividends of $0.68 per share and $0.62 p er \nshare, totaling $20.2  billion and $18.6  billion, respectively. We intend to continue returning capital to shareholders in the \nform of dividends, subject to declaration by our Board of Directors. Refer to Note 16 \u2013 Stockholders\u2019 Equity of the Notes to \nFinancial Statements for further discussion.  \nOther Planned Uses of Capital  \nOn January  18, 2022, we entered into a definitive agreement to acquire Activision Blizzard, Inc. (\u201cActivision Blizzard\u201d) for \n$95.00 per share in an all -cash transaction valued at $68.7  billion, inclusive of Activision Blizzard\u2019s net cash. The acquisition \nhas been approved by Activision Blizzard\u2019s shareholders. We continue to work toward closing the transaction subject to \nobtaining required regulatory approvals and satisfaction of other customary closing conditions. Microsoft and Activision \nBlizzard have joi ntly agreed to extend the merger agreement through October  18, 2023 to allow for additional time to resolve \nremaining regulatory concerns.  \nWe will continue to invest in sales, marketing, product support infrastructure, and existing and advanced areas of \ntechnology, as well as acquisitions that align with our business strategy. Additions to property and equipment will continue, \nincluding new facilities, datacenters, and computer systems for research and development, sales and marketing, support, \nand adminis trative staff. We expect capital expenditures to increase in coming years to support growth in our cloud offerings \nand our investments in AI infrastructure. We have operating and finance leases for datacenters, corporate offices, research"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59729dc-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 38, "chroma:document": "and development f acilities, Microsoft Experience Centers, and certain equipment. We have not engaged in any related party \ntransactions or arrangements with unconsolidated entities or other persons that are reasonably likely to materially affect \nliquidity or the availabilit y of capital resources.  \nCRITICAL ACCOUNTING ESTIMATES  \nOur consolidated financial statements and accompanying notes are prepared in accordance with GAAP. Preparing \nconsolidated financial statements requires management to make estimates and assumptions that affect the reported \namounts of assets, liabilities, re venue, and expenses. Critical accounting estimates are those estimates that involve a \nsignificant level of estimation uncertainty and could have a material impact on our financial condition or results of operati ons. \nWe have critical accounting estimates in  the areas of revenue recognition, impairment of investment securities, goodwill, \nresearch and development costs, legal and other contingencies, income taxes, and inventories.  \n  \nRevenue Recognition  \nOur contracts with customers often include promises to t ransfer multiple products and services to a customer. Determining \nwhether products and services are considered distinct performance obligations that should be accounted for separately \nversus together may require significant judgment. When a cloud -based ser vice includes both on -premises software licenses \nand cloud services, judgment is required to determine whether the software license is considered distinct and accounted \nfor separately, or not distinct and accounted for together with the cloud service and r ecognized over time. Certain cloud \nservices, primarily Office 365, depend on a significant level of integration, interdependency, and interrelation between the \ndesktop applications and cloud services, and are accounted for together as one performance oblig ation. Revenue from \nOffice 365 is recognized ratably over the period in which the cloud services are provided.  \nJudgment is required to determine the stand -alone selling price (\u201cSSP\u201d) for each distinct performance obligation. We use a \nsingle amount to esti mate SSP for items that are not sold separately, including on -premises licenses sold with SA or software \nupdates provided at no additional charge. We use a range of amounts to estimate SSP when we sell each of the products \nand services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the \nvarious products and services."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972a0e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 38, "chroma:document": "various products and services.  \nIn instances where SSP is not directly observable, such as when we do not sell the product or service separately, we \ndetermine the SSP  using information that may include market conditions and other observable inputs. We typically have \nmore than one SSP for individual products and services due to the stratification of those products and services by customers"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972a4a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 39, "chroma:document": "39 and circumstances. In these in stances, we may use information such as the size of the customer and geographic region in \ndetermining the SSP.  \nDue to the various benefits from and the nature of our SA program, judgment is required to assess the pattern of delivery, \nincluding the exercis e pattern of certain benefits across our portfolio of customers.  \nOur products are generally sold with a right of return, we may provide other credits or incentives, and in certain instances \nwe estimate customer usage of our products and services, which ar e accounted for as variable consideration when \ndetermining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at \nthe end of each reporting period if additional information becomes available. Changes to o ur estimated variable \nconsideration were not material for the periods presented.  \nImpairment of Investment Securities  \nWe review debt investments quarterly for credit losses and impairment. If the cost of an investment exceeds its fair value, \nwe evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to \nwhich the fair value is less than cost. This determination requires significant judgment. In making this judgment, we employ \na systematic methodolo gy that considers available quantitative and qualitative evidence in evaluating potential impairment \nof our investments. In addition, we consider specific adverse conditions related to the financial health of, and business \noutlook for, the investee. If we have plans to sell the security or it is more likely than not that we will be required to sell the \nsecurity before recovery, then a decline in fair value below cost is recorded as an impairment charge in other income \n(expense), net and a new cost basis in the investment is established. If market, industry, and/or investee conditions \ndeteriorate, we may incur future impairments.  \nEquity investments without readily determinable fair values are written down to fair value if a qualitative assessment \nindicates t hat the investment is impaired and the fair value of the investment is less than carrying value. We perform a \nqualitative assessment on a periodic basis. We are required to estimate the fair value of the investment to determine the \namount of the impairment  loss. Once an investment is determined to be impaired, an impairment charge is recorded in other \nincome (expense), net.  \nGoodwill"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972a7c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 39, "chroma:document": "income (expense), net.  \nGoodwill  \nWe allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. We \nevaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation \napproach. Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating \nsegment) on  an annual basis (May 1) and between annual tests if an event occurs or circumstances change that would \nmore likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could \ninclude a significant chang e in the business climate, legal factors, operating performance indicators, competition, or sale or \ndisposition of a significant portion of a reporting unit.  \nApplication of the goodwill impairment test requires judgment, including the identification of re porting units, assignment of \nassets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each \nreporting unit. The fair value of each reporting unit is estimated primarily through the use of a  discounted cash flow \nmethodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on \ninternal forecasts, estimation of the long -term rate of growth for our business, estimation of the useful life  over which cash \nflows will occur, and determination of our weighted average cost of capital.  \nThe estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, \nmarket conditions, and other factors. Cha nges in these estimates and assumptions could materially affect the determination \nof fair value and goodwill impairment for each reporting unit.  \nResearch and Development Costs  \nCosts incurred internally in researching and developing a computer software product are charged to expense until \ntechnological feasibility has been established for the product. Once technological feasibility is established, software costs  \nare capitalized u ntil the product is available for general release to customers. Judgment is required in determining when \ntechnological feasibility of a product is established. We have determined that technological feasibility for our software \nproducts is reached after all  high-risk development issues have been resolved through coding and testing. Generally, this"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972aae-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 40, "chroma:document": "40 occurs shortly before the products are released to production. The amortization of these costs is included in cost of revenue  \nover the estimated life of the produc ts.  \nLegal and Other Contingencies    \nThe outcomes of legal proceedings and claims brought against us are subject to significant uncertainty. An estimated loss \nfrom a loss contingency such as a legal proceeding or claim is accrued by a charge to income if it is probable that an asset \nhas been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. In determining \nwhether a loss should be accrued we evaluate, among other factors, the degree of probability of an unfavo rable outcome \nand the ability to make a reasonable estimate of the amount of loss. Changes in these factors could materially impact our \nconsolidated financial statements.  \nIncome Taxes  \nThe objectives of accounting for income taxes are to recognize the amo unt of taxes payable or refundable for the current \nyear, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an \nentity\u2019s financial statements or tax returns. We recognize the tax benefit from an un certain tax position only if it is more likely \nthan not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of t he \nposition. The tax benefits recognized in the financial statements from such a pos ition are measured based on the largest \nbenefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accounting literature also provide s \nguidance on derecognition of income tax assets and liabilities, classification of deferre d income tax assets and liabilities, \naccounting for interest and penalties associated with tax positions, and income tax disclosures. Judgment is required in \nassessing the future tax consequences of events that have been recognized in our consolidated fina ncial statements or tax \nreturns. Variations in the actual outcome of these future tax consequences could materially impact our consolidated financial  \nstatements.  \n  \nInventories  \nInventories are stated at average cost, subject to the lower of cost or net re alizable value. Cost includes materials, labor, \nand manufacturing overhead related to the purchase and production of inventories. Net realizable value is the estimated \nselling price less estimated costs of completion, disposal, and transportation. We regul arly review inventory quantities on"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972ae0-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 40, "chroma:document": "hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. These reviews include \nanalysis of demand forecasts, product life cycle status, product development plans, current sales le vels, pricing strategy, \nand component cost trends. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a \nnew cost basis through a charge to cost of revenue."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972b12-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 41, "chroma:document": "41 STATEMENT OF MANAGEMENT\u2019S RESPONSIBILITY FOR FINANCI AL STATEMENTS  \nManagement is responsible for the preparation of the consolidated financial statements and related information that are \npresented in this report. The consolidated financial statements, which include amounts based on management\u2019s estimates \nand judgments, have been prepared in conformity with accounting principles generally accepted in the United States of \nAmerica.  \nThe Company designs and maintains accounting and internal control systems to provide reasonable assurance at \nreasonable cost that assets are safeguarded against loss from unauthorized use or disposition, and that the financial records \nare reliable for preparing consolidated financial statements and maintaining accountability for assets. These systems are \naugmented by written policies , an organizational structure providing division of responsibilities, careful selection and training \nof qualified personnel, and a program of internal audits.  \nThe Company engaged Deloitte  & Touche LLP, an independent registered public accounting firm, to audit and render an \nopinion on the consolidated financial statements and internal control over financial reporting in accordance with the \nstandards of the Public Company Accounting Oversight Board (United States).  \nThe Board of Directors, through its Audit  Committee, consisting solely of independent directors of the Company, meets \nperiodically with management, internal auditors, and our independent registered public accounting firm to ensure that each \nis meeting its responsibilities and to discuss matters c oncerning internal controls and financial reporting. Deloitte  & Touche \nLLP and the internal auditors each have full and free access to the Audit Committee.  \nSatya Nadella  \nChief Executive Officer  \nAmy E. Hood  \nExecutive Vice President and Chief Financial Officer  \nAlice L. Jolla  \nCorporate Vice President and Chief Accounting Officer"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972b44-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 42, "chroma:document": "42 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  \nRISKS  \nWe are exposed to economic risk from foreign exchange rates, interest rates, credit risk, and equity prices. We use \nderivatives instruments to manage these risks, however, they may still impact our consolidated financial statements.  \nForeign Currencies  \nCertain forecasted transactions, assets, and liabilities are exposed to foreign currency risk. We monitor our foreign currency \nexposures daily to maximize the economic effectiveness of our foreign currency positions, including hedges. Principal \ncurrency expo sures include the Euro, Japanese yen, British pound, Canadian dollar, and Australian dollar.  \nInterest Rate  \nSecurities held in our fixed -income portfolio are subject to different interest rate risks based on their maturities. We manage \nthe average maturit y of the fixed -income portfolio to achieve economic returns that correlate to certain global fixed -income \nindices.  \nCredit  \nOur fixed -income portfolio is diversified and consists primarily of investment -grade securities. We manage credit exposures \nrelative  to broad -based indices to facilitate portfolio diversification.  \nEquity  \nSecurities held in our equity investments portfolio are subject to price risk.  \nSENSITIVITY ANALYSIS  \nThe following table sets forth the potential loss in future earnings or fair val ues, including associated derivatives, resulting \nfrom hypothetical changes in relevant market rates or prices:  \n  \n(In millions)          \n        \nRisk Categories  Hypothetical Change  June  30, \n2023  Impact  \n        \nForeign currency \u2013 Revenue  10% decrease in  foreign exchange rates  $   (8,122 ) Earnings  \nForeign currency \u2013 Investments  10% decrease in foreign exchange rates   (29) Fair Value  \nInterest rate  100 basis point increase in U.S. treasury interest rates   (1,832 ) Fair Value  \nCredit  100 basis point increase in credit spreads   (354) Fair Value  \nEquity  10% decrease in equity market prices   (705) Earnings"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/msft-10-k-2023.pdf", "page": 43, "chroma:document": "43 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA  \nINCOME STATEMENTS  \n  \n(In millions, except per share amounts)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nRevenue:        \nProduct  $  \u200764,699   $  72,732   $  \u200771,074   \nService and other   147,216    125,538    97,014         \nTotal revenue   211,915    198,270    168,088         \nCost of revenue:        \nProduct   17,804    19,064    18,219   \nService and other   48,059    43,586    34,013         \nTotal cost of revenue   65,863    62,650    52,232         \nGross margin   146,052    135,620    115,856   \nResearch and development   27,195    24,512    20,716   \nSales and marketing   22,759    21,825    20,117   \nGeneral and administrative   7,575    5,900    5,107         \nOperating income   88,523    83,383    69,916   \nOther income, net   788   333   1,186         \nIncome before income taxes   89,311    83,716    71,102   \nProvision for income taxes   16,950    10,978    9,831         \nNet income  $ 72,361   $ 72,738   $ 61,271           \n        \nEarnings per share:        \nBasic  $ 9.72  $ 9.70  $ 8.12  \nDiluted  $ 9.68  $ 9.65  $ 8.05  \n        \nWeighted average shares outstanding:        \nBasic   7,446    7,496    7,547   \nDiluted   7,472    7,540    7,608     \nRefer to accompanying notes."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972bb2-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 44, "chroma:document": "44 COMPREHENSIVE INCOME STATEMENTS  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nNet income  $  72,361   $  72,738   $  61,271           \n        \nOther comprehensive income (loss), net of tax:        \nNet change related to derivatives   (14)  6   19  \nNet change related to investments   (1,444 )  (5,360 )  (2,266 ) \nTranslation adjustments and other   (207)  (1,146 )  873        \nOther comprehensive loss   (1,665 )  (6,500 )  (1,374 )       \nComprehensive income  $ 70,696   $ 66,238   $ 59,897           \nRefer to accompanying notes."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/msft-10-k-2023.pdf", "page": 45, "chroma:document": "45 BALANCE SHEETS  \n  \n(In millions)        \n      \nJune  30, 2023  2022  \n      \nAssets      \nCurrent assets:      \nCash and cash equivalents  $ 34,704   $ 13,931   \nShort -term investments   76,558    90,826       \nTotal cash, cash equivalents, and short -term investments    111,262     104,757   \nAccounts receivable, net of allowance for doubtful accounts of $650  and $633   48,688    44,261   \nInventories   2,500    3,742   \nOther current assets   21,807    16,924       \nTotal current assets   184,257    169,684   \nProperty and equipment, net of accumulated depreciation of $68,251  and $59,660   95,641    74,398   \nOperating lease right -of-use assets   14,346    13,148   \nEquity investments   9,879    6,891   \nGoodwill   67,886    67,524   \nIntangible assets, net   9,366    11,298   \nOther long -term assets   30,601    21,897       \nTotal assets  $  411,976   $   364,840         \nLiabilities and stockholders\u2019 equity      \nCurrent liabilities:      \nAccounts payable  $ 18,095   $ 19,000   \nCurrent portion of long -term debt   5,247    2,749   \nAccrued compensation   11,009    10,661   \nShort -term income taxes   4,152    4,067   \nShort -term unearned revenue   50,901    45,538   \nOther current liabilities   14,745    13,067       \nTotal current liabilities   104,149    95,082   \nLong -term debt   41,990    47,032   \nLong -term income taxes   25,560    26,069   \nLong -term unearned revenue   2,912    2,870   \nDeferred income taxes   433   230  \nOperating lease liabilities   12,728    11,489"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972c16-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 45, "chroma:document": "Operating lease liabilities   12,728    11,489   \nOther long -term liabilities   17,981    15,526       \nTotal liabilities   205,753    198,298       \nCommitments and contingencies      \nStockholders\u2019 equity:      \nCommon stock and paid -in capital \u2013 shares authorized 24,000; outstanding 7,432  \nand 7,464   93,718    86,939   \nRetained earnings   118,848    84,281   \nAccumulated other comprehensive loss   (6,343 )  (4,678 )     \nTotal stockholders\u2019 equity   206,223    166,542       \nTotal liabilities and stockholders\u2019 equity  $ 411,976   $ 364,840         \nRefer to accompanying notes."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/msft-10-k-2023.pdf", "page": 46, "chroma:document": "46 CASH FLOWS STATEMENTS  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nOperations        \nNet income  $  \u2004  72,361   $  \u200472,738   $  \u200461,271   \nAdjustments to reconcile net income to net cash from operations:        \nDepreciation, amortization, and other   13,861    14,460    11,686   \nStock -based compensation expense   9,611    7,502    6,118   \nNet recognized losses (gains) on investments and derivatives   196   (409)  (1,249 ) \nDeferred income taxes   (6,059 )  (5,702 )  (150) \nChanges in operating assets and liabilities:        \nAccounts receivable   (4,087 )  (6,834 )  (6,481 ) \nInventories   1,242    (1,123 )  (737) \nOther current assets   (1,991 )  (709)  (932) \nOther long -term assets   (2,833 )  (2,805 )  (3,459 ) \nAccounts payable   (2,721 )  2,943    2,798   \nUnearned revenue   5,535    5,109    4,633   \nIncome taxes   (358)  696   (2,309 ) \nOther current liabilities   2,272    2,344    4,149   \nOther long -term liabilities   553   825   1,402         \nNet cash from operations   87,582    89,035    76,740         \nFinancing        \nCash premium on debt exchange   0   0   (1,754 ) \nRepayments of debt   (2,750 )  (9,023 )  (3,750 ) \nCommon stock issued   1,866    1,841    1,693   \nCommon stock repurchased   (22,245 )  (32,696 )  (27,385 ) \nCommon stock cash dividends paid   (19,800 )  (18,135 )  (16,521 )"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972c7a-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 46, "chroma:document": "Other, net   (1,006 )  (863)  (769)       \nNet cash used in financing   (43,935 )  (58,876 )  (48,486 )       \nInvesting        \nAdditions to property and equipment   (28,107 )  (23,886 )  (20,622 ) \nAcquisition of companies, net of cash acquired, and purchases of \nintangible and other assets   (1,670 )  (22,038 )  (8,909 ) \nPurchases of investments   (37,651 )  (26,456 )  (62,924 ) \nMaturities of investments   33,510    16,451    51,792   \nSales of investments   14,354    28,443    14,008   \nOther, net   (3,116 )  (2,825 )  (922)       \nNet cash used in investing   (22,680 )  (30,311 )  (27,577 )       \nEffect of foreign exchange rates on cash and cash equivalents   (194)  (141)  (29)       \nNet change in cash and cash equivalents   20,773    (293)  648  \nCash and cash equivalents, beginning of period   13,931    14,224    13,576         \nCash and cash equivalents, end of period  $ 34,704   $ 13,931   $ 14,224           \nRefer to accompanying notes."}


created_at: 2024-10-19 14:13:57
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{"source": "dataset/msft-10-k-2023.pdf", "page": 47, "chroma:document": "47 STOCKHOLDERS\u2019 EQUITY STATEMENTS  \n  \n(In millions, except per share amounts)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nCommon stock and paid -in capital        \nBalance, beginning of period  $ 86,939   $ 83,111   $  \u200480,552   \nCommon stock issued   1,866    1,841    1,963   \nCommon stock repurchased   (4,696 )  (5,688 )  (5,539 ) \nStock -based compensation expense   9,611    7,502    6,118   \nOther, net  (2)  173   17        \nBalance, end of period   93,718    86,939    83,111         \nRetained earnings        \nBalance, beginning of period   84,281    57,055    34,566   \nNet income   72,361    72,738    61,271   \nCommon stock cash dividends   (20,226 )  (18,552 )  (16,871 ) \nCommon stock repurchased   (17,568 )  (26,960 )  (21,879 ) \nCumulative effect of accounting changes   0   0   (32)       \nBalance, end of period   118,848    84,281    57,055         \nAccumulated other comprehensive income (loss)        \nBalance,  beginning of period   (4,678 )  1,822    3,186   \nOther comprehensive loss   (1,665 )  (6,500 )  (1,374 ) \nCumulative effect of accounting changes   0   0   10        \nBalance, end of period   (6,343 )  (4,678 )  1,822         \nTotal stockholders\u2019 equity  $   206,223   $   166,542   $   141,988           \n        \nCash dividends declared per common share  $ 2.72  $ 2.48  $ 2.24    \nRefer to accompanying notes."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/msft-10-k-2023.pdf", "page": 48, "chroma:document": "48 NOTES TO FINANCIAL STATEMENTS  \nNOTE 1 \u2014 ACCOUNTING POLICIES  \nAccounting Principles  \nOur consolidated financial statements and accompanying notes are prepared in accordance with accounting principles \ngenerally accepted in the United States of America (\u201cGAAP\u201d).  \nWe have recast certain prior period amounts to conform to the current period pr esentation. The recast of these prior period \namounts had no impact on our consolidated balance sheets, consolidated income statements, or consolidated cash flows \nstatements.  \nPrinciples of Consolidation  \nThe consolidated financial statements include the ac counts of Microsoft Corporation and its subsidiaries. Intercompany \ntransactions and balances have been eliminated.  \nEstimates and Assumptions  \nPreparing financial statements requires management to make estimates and assumptions that affect the reported amo unts \nof assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for revenue recognition, \ndetermining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price \n(\u201cSSP\u201d) o f performance obligations, variable consideration, and other obligations such as product returns and refunds; loss \ncontingencies; product warranties; the fair value of and/or potential impairment of goodwill and intangible assets for our \nreporting units; p roduct life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the \nmarket value of, and demand for, our inventory; stock -based compensation forfeiture rates; when technological feasibility \nis achieved for our prod ucts; the potential outcome of uncertain tax positions that have been recognized in our consolidated \nfinancial statements or tax returns; and determining the timing and amount of impairments for investments. Actual results \nand outcomes may differ from mana gement\u2019s estimates and assumptions due to risks and uncertainties.  \nIn July 2022, we completed an assessment of the useful lives of our server and network equipment. Due to investments in \nsoftware that increased efficiencies in how we operate our server an d network equipment, as well as advances in \ntechnology, we determined we should increase the estimated useful lives of both server and network equipment from four \nyears to six years. This change in accounting estimate was effective beginning fiscal year 20 23. Based on the carrying \namount of server and network equipment included in property and equipment, net as of June  30, 2022, the effect of this"}


created_at: 2024-10-19 14:13:57
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{"source": "dataset/msft-10-k-2023.pdf", "page": 48, "chroma:document": "change in estimate for fiscal year 2023 was an increase in operating income of $3.7  billion and net income of $ 3.0 billion, \nor $0.40 per both basic and diluted share.  \nForeign Currencies  \nAssets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenue \nand expenses are translated at average rates of exchan ge prevailing during the year. Translation adjustments resulting \nfrom this process are recorded to other comprehensive income.  \nRevenue  \nProduct Revenue and Service and Other Revenue  \nProduct revenue includes sales from operating systems, cross -device productivity and collaboration applications, server \napplications, business solution applications, desktop and server management tools, software development tools, video \ngames, and hardware  such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related \naccessories.  \n  \nService and other revenue includes sales from cloud -based solutions that provide customers with software, services, \nplatforms, and content such  as Office 365, Azure, Dynamics 365, and Xbox; solution support; and consulting services. \nService and other revenue also includes sales from online advertising and LinkedIn."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/msft-10-k-2023.pdf", "page": 49, "chroma:document": "49 Revenue Recognition  \nRevenue is recognized upon transfer of control of promised p roducts or services to customers in an amount that reflects \nthe consideration we expect to receive in exchange for those products or services. We enter into contracts that can include \nvarious combinations of products and services, which are generally capab le of being distinct and accounted for as separate \nperformance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, \nwhich are subsequently remitted to governmental authorities.  \nNature of Products and Services  \nLicenses for on -premises software provide the customer with a right to use the software as it exists when made available \nto the customer. Customers may purchase perpetual licenses or subscribe to licenses, which provide cus tomers with the \nsame functionality and differ mainly in the duration over which the customer benefits from the software. Revenue from \ndistinct on -premises licenses is recognized upfront at the point in time when the software is made available to the custom er. \nIn cases where we allocate revenue to software updates, primarily because the updates are provided at no additional \ncharge, revenue is recognized as the updates are provided, which is generally ratably over the estimated life of the related \ndevice or l icense.  \nCertain volume licensing programs, including Enterprise Agreements, include on -premises licenses combined with Software \nAssurance (\u201cSA\u201d). SA conveys rights to new software and upgrades released over the contract period and provides support, \ntools,  and training to help customers deploy and use products more efficiently. On -premises licenses are considered distinct \nperformance obligations when sold with SA. Revenue allocated to SA is generally recognized ratably over the contract \nperiod as customers simultaneously consume and receive benefits, given that SA comprises distinct performance \nobligations that are satisfied over time.  \nCloud services, which allow customers to use hosted software over the contract period without taking possession of the \nsoftware, are provided on either a subscription or consumption basis. Revenue related to cloud services provided on a \nsubscription basis is recognized ratably over the contract period. Revenue related to cloud services provided on a \nconsumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such \nresources. When cloud services require a significant level of integration and interdependency with software and the"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972d9c-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 49, "chroma:document": "individual components are not considered dis tinct, all revenue is recognized over the period in which the cloud services are \nprovided.  \nRevenue from search advertising is recognized when the advertisement appears in the search results or when the action \nnecessary to earn the revenue has been complet ed. Revenue from consulting services is recognized as services are \nprovided.  \nOur hardware is generally highly dependent on, and interrelated with, the underlying operating system and cannot function \nwithout the operating system. In these cases, the hardwa re and software license are accounted for as a single performance \nobligation and revenue is recognized at the point in time when ownership is transferred to resellers or directly to end \ncustomers through retail stores and online marketplaces.  \nRefer to Not e 19 \u2013 Segment Information and Geographic Data for further information, including revenue by significant \nproduct and service offering.  \nSignificant Judgments  \nOur contracts with customers often include promises to transfer multiple products and services to  a customer. Determining \nwhether products and services are considered distinct performance obligations that should be accounted for separately \nversus together may require significant judgment. When a cloud -based service includes both on -premises software l icenses \nand cloud services, judgment is required to determine whether the software license is considered distinct and accounted \nfor separately, or not distinct and accounted for together with the cloud service and recognized over time. Certain cloud \nservic es, primarily Office 365, depend on a significant level of integration, interdependency, and interrelation between the \ndesktop applications and cloud services, and are accounted for together as one performance obligation. Revenue from \nOffice 365 is recogni zed ratably over the period in which the cloud services are provided.  \nJudgment is required to determine the SSP for each distinct performance obligation. We use a single amount to estimate \nSSP for items that are not sold separately, including on -premises licenses sold with SA or software updates provided at no \nadditional charge. We use a range of amounts to estimate SSP when we sell each of the products and services separately \nand need to determine whether there is a discount to be allocated based on the r elative SSP of the various products and \nservices."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972dce-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 50, "chroma:document": "50 In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we \ndetermine the SSP using information that may include market conditions and other observa ble inputs. We typically have \nmore than one SSP for individual products and services due to the stratification of those products and services by customers \nand circumstances. In these instances, we may use information such as the size of the customer and ge ographic region in \ndetermining the SSP.  \nDue to the various benefits from and the nature of our SA program, judgment is required to assess the pattern of delivery, \nincluding the exercise pattern of certain benefits across our portfolio of customers.  \nOur p roducts are generally sold with a right of return, we may provide other credits or incentives, and in certain instances \nwe estimate customer usage of our products and services, which are accounted for as variable consideration when \ndetermining the amount o f revenue to recognize. Returns and credits are estimated at contract inception and updated at \nthe end of each reporting period if additional information becomes available. Changes to our estimated variable \nconsideration were not material for the periods p resented.  \nContract Balances and Other Receivables  \nTiming of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue \nis recognized prior to invoicing, or unearned revenue when revenue is recognized sub sequent to invoicing. For multi -year \nagreements, we generally invoice customers annually at the beginning of each annual coverage period. We record a \nreceivable related to revenue recognized for multi -year on -premises licenses as we have an unconditional r ight to invoice \nand receive payment in the future related to those licenses.  \nUnearned revenue comprises mainly unearned revenue related to volume licensing programs, which may include SA and \ncloud services. Unearned revenue is generally invoiced annually at the beginning of each contract period for multi -year \nagreements and recognized ratably over the coverage period. Unearned revenue also includes payments for consulting \nservices to be performed in the future, LinkedIn subscriptions, Office 365 subscripti ons, Xbox subscriptions, Windows post -\ndelivery support, Dynamics business solutions, and other offerings for which we have been paid in advance and earn the \nrevenue when we transfer control of the product or service."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972e00-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 50, "chroma:document": "revenue when we transfer control of the product or service.  \nRefer to Note 13 \u2013 Unearned Revenue fo r further information, including unearned revenue by segment and changes in \nunearned revenue during the period.  \nPayment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 \nto 60 days. In instance s where the timing of revenue recognition differs from the timing of invoicing, we have determined \nour contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to \nprovide customers with simplified and predictable ways of purchasing our products and services, not to receive financing \nfrom our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription \nterm with revenue recognized ratably over the co ntract period, and multi -year on -premises licenses that are invoiced \nannually with revenue recognized upfront.  \n  \nAs of June  30, 2023 and 2022, long -term accounts receivable, net of allowance for doubtful accounts, was $4.5  billion and \n$3.8 billion, respec tively, and is included in other long -term assets in our consolidated balance sheets.  \nThe allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable \nbalance. We determine the allowance based on known troubled accounts, historical experience, and other currently \navailable evidence.  \nActivity in the allowance for doubtful accounts was as follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nBalance, beginning of period  $ \u2004 710  $ \u2004 798  $ \u2004 816  \nCharged to costs and other   258   157   234  \nWrite -offs    (252)    (245)    (252)       \nBalance, end of period  $ 716  $ 710  $ 798"}


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{"source": "dataset/msft-10-k-2023.pdf", "page": 51, "chroma:document": "51 Allowance for doubtful accounts included in our consolidated balance sheets:  \n  \n(In millions)          \n        \nJune  30, 2023  2022  2021  \n        \nAccounts receivable, net of allowance for doubtful accounts  $ 650  $ 633  $ 751  \nOther long -term assets       66       77       47        \nTotal  $ 716  $ 710  $ 798          \nAs of June  30, 2023 and 2022, other receivables related to activities to facilitate the purchase of server components were \n$9.2 billion and $6.1  billion, respectively, and are included in other current assets in our consolidated balance sheets.  \nWe record financing receivables when we offer certain of our customers the option to acquire our software products and \nservices offerings through a financing program in a limited number of countries. As of June  30, 2023 and 2022, our financing \nreceivables, net were $5.3 billion and $4.1  billion, respectively, for short -term and long -term financing receivables, which \nare included in other current assets and other long -term assets in our consolidated balance sheets. We record an allowance \nto cover expected losses based  on troubled accounts, historical experience, and other currently available evidence.  \nAssets Recognized from Costs to Obtain a Contract with a Customer  \nWe recognize an asset for the incremental costs of obtaining a contract with a customer if we expect t he benefit of those \ncosts to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be \ncapitalized. Total capitalized costs to obtain a contract were immaterial during the periods presented and are includ ed in \nother current and long -term assets in our consolidated balance sheets.  \nWe apply a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the \namortization period would have been one year or less. These co sts include our internal sales organization compensation \nprogram and certain partner sales incentive programs as we have determined annual compensation is commensurate with \nannual sales activities.  \nCost of Revenue  \nCost of revenue includes: manufacturing and distribution costs for products sold and programs licensed; operating costs"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972e64-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 51, "chroma:document": "related to product support service centers and product distribution centers; costs incurred to include software on PCs sold \nby original equipment manufacturers (\u201cOEM\u201d), to driv e traffic to our websites, and to acquire online advertising space; costs \nincurred to support and maintain cloud -based and other online products and services, including datacenter costs and \nroyalties; warranty costs; inventory valuation adjustments; costs associated with the delivery of consulting services; and the \namortization of capitalized software development costs. Capitalized software development costs are amortized over the \nestimated lives of the products.  \nProduct Warranty  \nWe provide for the estima ted costs of fulfilling our obligations under hardware and software warranties at the time the related \nrevenue is recognized. For hardware warranties, we estimate the costs based on historical and projected product failure \nrates, historical and projected r epair costs, and knowledge of specific product failures (if any). The specific hardware \nwarranty terms and conditions vary depending upon the product sold and the country in which we do business, but generally \ninclude parts and labor over a period generall y ranging from 90  days to three years. For software warranties, we estimate \nthe costs to provide bug fixes, such as security patches, over the estimated life of the software. We regularly reevaluate ou r \nestimates to assess the adequacy of the recorded warr anty liabilities and adjust the amounts as necessary.  \nResearch and Development  \nResearch and development expenses include payroll, employee benefits, stock -based compensation expense, and other \nheadcount -related expenses associated with product developmen t. Research and development expenses also include third -\nparty development and programming costs and the amortization of purchased software code and services content. Such \ncosts related to software development are included in research and development expens e until the point that technological \nfeasibility is reached, which for our software products, is generally shortly before the products are released to production."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972e96-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 52, "chroma:document": "52 Once technological feasibility is reached, such costs are capitalized and amortized to cost o f revenue over the estimated \nlives of the products.  \nSales and Marketing  \nSales and marketing expenses include payroll, employee benefits, stock -based compensation expense, and other \nheadcount -related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, trade \nshows, seminars, and othe r programs. Advertising costs are expensed as incurred. Advertising expense was $904  million, \n$1.5 billion, and $1.5  billion in fiscal years 2023, 2022, and 2021, respectively.  \nStock -Based Compensation  \nCompensation cost for stock awards, which include re stricted stock units (\u201cRSUs\u201d) and performance stock units (\u201cPSUs\u201d), \nis measured at the fair value on the grant date and recognized as expense, net of estimated forfeitures, over the related \nservice or performance period. The fair value of stock awards is b ased on the quoted price of our common stock on the \ngrant date less the present value of expected dividends not received during the vesting period. We measure the fair value \nof PSUs using a Monte Carlo valuation model. Compensation cost for RSUs is recogni zed using the straight -line method \nand for PSUs is recognized using the accelerated method.  \nCompensation expense for the employee stock purchase plan (\u201cESPP\u201d) is measured as the discount the employee is \nentitled to upon purchase and is recognized in the p eriod of purchase.  \nEmployee Severance  \nOn January  18, 2023, we announced a decision to reduce our overall workforce by approximately 10,000 jobs through the \nthird quarter of fiscal year 2023. During the three months ended December  31, 2022, we recorded $8 00 million of employee \nseverance expenses related to these job eliminations as part of an ongoing employee benefit plan. These employee \nseverance expenses were incurred as part of a corporate program, and were included in general and administrative \nexpense s in our consolidated income statements and allocated to our segments based on relative gross margin. Refer to \nNote 19 \u2013 Segment Information and Geographic Data for further information.  \n  \nIncome Taxes"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972ec8-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 52, "chroma:document": "Income Taxes  \nIncome tax expense includes U.S. and international in come taxes, and interest and penalties on uncertain tax positions. \nCertain income and expenses are not reported in tax returns and financial statements in the same year. The tax effect of \nsuch temporary differences is reported as deferred income taxes. Def erred tax assets are reported net of a valuation \nallowance when it is more likely than not that a tax benefit will not be realized. All deferred income taxes are classified a s \nlong-term in our consolidated balance sheets.  \nFinancial Instruments  \nInvestment s  \nWe consider all highly liquid interest -earning investments with a maturity of three months or less at the date of purchase to \nbe cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with \noriginal maturities of greater than three months and remaining maturities of less than one year are classified as short -term \ninvestments. Investments with maturities beyond one year may be classified as short -term based on their highly liquid nature \nand because  such marketable securities represent the investment of cash that is available for current operations.  \nDebt investments are classified as available -for-sale and realized gains and losses are recorded using the specific \nidentification method. Changes in fa ir value, excluding credit losses and impairments, are recorded in other comprehensive \nincome. Fair value is calculated based on publicly available market information or other estimates determined by \nmanagement. If the cost of an investment exceeds its fai r value, we evaluate, among other factors, general market \nconditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine  \ncredit losses, we employ a systematic methodology that considers availab le quantitative and qualitative evidence. In \naddition, we consider specific adverse conditions related to the financial health of, and business outlook for, the investee.  If \nwe have plans to sell the security or it is more likely than not that we will be r equired to sell the security before recovery, \nthen a decline in fair value below cost is recorded as an impairment charge in other income (expense), net and a new cost"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972f04-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 53, "chroma:document": "53 basis in the investment is established. If market, industry, and/or investee conditions deteriorate, we may incur future \nimpairments.  \nEquity investments with readily determinable fair values are measured at fair value. Equity investments without readily \ndeterminable fair values are measured using the equity method or measured at cost with ad justments for observable \nchanges in price or impairments (referred to as the measurement alternative). We perform a qualitative assessment on a \nperiodic basis and recognize an impairment if there are sufficient indicators that the fair value of the investm ent is less than \ncarrying value. Changes in value are recorded in other income (expense), net.  \nDerivatives  \nDerivative instruments are recognized as either assets or liabilities and measured at fair value. The accounting for changes \nin the fair value of a  derivative depends on the intended use of the derivative and the resulting designation.  \nFor derivative instruments designated as fair value hedges, gains and losses are recognized in other income (expense), \nnet with offsetting gains and losses on the hed ged items. Gains and losses representing hedge components excluded from \nthe assessment of effectiveness are recognized in other income (expense), net.  \nFor derivative instruments designated as cash flow hedges, gains and losses are initially reported as a component of other \ncomprehensive income and subsequently recognized in other income (expense), net with the corresponding hedged item. \nGains and losses representing hedge components excluded from the assessment of effectiveness are recognized in other \nincome (expense), net.  \nFor derivative instruments that are not designated as hedges, gains and losses from changes in fair values are primarily \nrecognized in other income (expense), net.  \n  \nFair Value Measurements  \nWe account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on th e \nextent to which inputs used in measuring fair value are observable in the market.  We categorize each of our fair value \nmeasuremen ts in one of these three levels based on the lowest level input that is significant to the fair value measurement \nin its entirety. These levels are:  \n\u2022 Level  1 \u2013 inputs are based upon unadjusted quoted prices for identical instruments in active markets. Ou r \nLevel  1 investments include U.S. government securities, common and preferred stock, and mutual funds.  Our"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972f36-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 53, "chroma:document": "Level  1 derivative assets and liabilities include those actively traded on exchanges.   \n\u2022 Level  2 \u2013 inputs are based upon quoted prices for similar i nstruments in active markets, quoted prices for \nidentical or similar instruments in markets that are not active, and model -based valuation techniques (e.g. the \nBlack -Scholes model) for which all significant inputs are observable in the market or can be cor roborated by \nobservable market data for substantially the full term of the assets or liabilities. Where applicable, these models \nproject future cash flows and discount the future amounts to a present value using market -based observable \ninputs including int erest rate curves, credit spreads, foreign exchange rates, and forward and spot prices for \ncurrencies. Our Level  2 investments include commercial paper, certificates of deposit, U.S. agency securities, \nforeign government bonds, mortgage - and asset -backed s ecurities, corporate notes and bonds, and municipal \nsecurities. Our Level  2 derivative assets and liabilities include certain cleared swap contracts and over -the-\ncounter forward, option, and swap contracts.  \n\u2022 Level  3 \u2013 inputs are generally unobservable an d typically reflect management\u2019s estimates of assumptions that \nmarket participants would use in pricing the asset or liability. The fair values are therefore determined using \nmodel -based techniques, including option pricing models and discounted cash flow models. Our Level  3 assets \nand liabilities include investments in corporate notes and bonds, municipal securities, and goodwill and \nintangible assets, when they are recorded at fair value due to an impairment charge.  Unobservable inputs used \nin the models are significant to the fair values of the assets and liabilities.  \nWe measure equity investments without readily determinable fair values on a nonrecurring basis. The fair values of these \ninvestments are determined based on valuation techniques using the b est information available, and may include quoted \nmarket prices, market comparables, and discounted cash flow projections.  \nOur other current financial assets and current financial liabilities have fair values that approximate their carrying values."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972f68-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 54, "chroma:document": "54 Inven tories  \nInventories are stated at average cost, subject to the lower of cost or net realizable value. Cost includes materials, labor,  \nand manufacturing overhead related to the purchase and production of inventories. Net realizable value is the estimated \nselling pr ice less estimated costs of completion, disposal, and transportation. We regularly review inventory quantities on \nhand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a \nreduction in utili ty below carrying value, we reduce our inventory to a new cost basis through a charge to cost of revenue.  \nProperty and Equipment  \nProperty and equipment is stated at cost less accumulated depreciation, and depreciated using the straight -line method \nover t he shorter of the estimated useful life of the asset or the lease term. The estimated useful lives of our property and \nequipment are generally as follows: computer software developed or acquired for internal use, three years; computer \nequipment, two to six  years; buildings and improvements, five to 15 years; leasehold improvements, three to 20 years; and \nfurniture and equipment, one to 10 years. Land is not depreciated.  \nLeases  \nWe determine if an arrangement is a lease at inception. Operating leases are in cluded in operating lease right -of-use \n(\u201cROU\u201d) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases  \nare included in property and equipment, other current liabilities, and other long -term liab ilities in our consolidated balance \nsheets.  \nROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation \nto make lease payments arising from the lease. Operating lease ROU assets and liabiliti es are recognized at \ncommencement date based on the present value of lease payments over the lease term. As most of our leases do not \nprovide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for \ncollateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset \nalso includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or \nterminate the lease whe n it is reasonably certain that we will exercise that option. Lease expense for lease payments is"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972f9a-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 54, "chroma:document": "recognized on a straight -line basis over the lease term.  \nWe have lease agreements with lease and non -lease components, which are generally accounted for sepa rately. For certain \nequipment leases, such as vehicles, we account for the lease and non -lease components as a single lease component. \nAdditionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU \nassets and liabilities.  \nGoodwill  \nGoodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) \non an annual basis (May 1) and between annual tests if an event occurs or circumstances change that would more likely \nthan not reduce the fair value of a reporting unit below its carrying value.  \nIntangible Assets  \nOur intangible assets are subject to amortization and are amortized using the straight -line method over their estimated \nperiod of benefit, ranging from one to 20 years. We evaluate the recoverability of intangible assets periodically by taking \ninto account  events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be \nimpaired.  \nNOTE 2 \u2014 EARNINGS PER SHARE  \nBasic earnings per share (\u201cEPS\u201d) is computed based on the weighted average number of shares of common stoc k \noutstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock \nplus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive \npotential co mmon shares include outstanding stock options and stock awards."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5972fc2-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 55, "chroma:document": "55 The components of basic and diluted EPS were as follows:  \n  \n(In millions, except earnings per share)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nNet income available for common shareholders (A)  $  72,361   $  72,738   $  61,271           \n        \nWeighted average outstanding shares of common stock (B)   7,446    7,496    7,547   \nDilutive effect of stock -based awards   26   44   61        \nCommon stock and common stock equivalents (C)   7,472    7,540    7,608           \n        \nEarnings Per Share        \n        \nBasic (A/B)  $ 9.72  $ 9.70  $ 8.12  \nDiluted (A/C)  $ 9.68  $ 9.65  $ 8.05    \nAnti-dilutive stock -based awards excluded from the calculations of diluted EPS were immaterial during the periods \npresented.  \n  \nNOTE 3 \u2014 OTHER INCOME (EXPENSE), NET  \nThe components of other income (expense), net were as follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nInterest and dividends income  $  \u20042,994   $  \u20042,094   $  \u20042,131   \nInterest expense   (1,968 )  (2,063 )  (2,346 ) \nNet recognized gains on investments   260   461   1,232   \nNet gains (losses) on derivatives   (456)  (52)  17  \nNet gains (losses) on foreign currency remeasurements   181   (75)  54  \nOther, net   (223)  (32)  98        \nTotal  $ 788  $ 333  $ 1,186           \nNet Recognized Gains (Losses) on Investments  \nNet recognized gains (losses) on debt investments were as follows:  \n  \n(In millions)"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/msft-10-k-2023.pdf", "page": 55, "chroma:document": "(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nRealized gains from sales of available -for-sale securities  $  \u2007\u200436  $  \u2004162  $  \u2004105  \nRealized losses from sales of available -for-sale securities   (124)  (138)  (40) \nImpairments and allowance for credit losses   (10)  (81)  (2)       \nTotal  $ (98) $ (57) $ 63          \nNet recognized gains (losses) on equity investments were as follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nNet realized gains on investments sold  $  \u2007\u200475  $  \u2007\u200429  $  \u2007\u2004123   \nNet unrealized gains on investments still held   303   509   1,057   \nImpairments of investments   (20)  (20)  (11)       \nTotal  $ 358  $ 518  $ 1,169"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973026-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 56, "chroma:document": "56 NOTE 4  \u2014 INVESTMENTS  \nInvestment Components  \nThe components of investments were as follows:  \n  \n(In millions)  Fair Value  \nLevel  Adjusted  \nCost  Basis  Unrealized  \nGains  Unrealized  \nLosses  Recorded  \nBasis  Cash  and \nCash  \nEquivalents  Short -term  \nInvestments  Equity  \nInvestments    \n                  \nJune  30, 2023                  \n                \nChanges in Fair Value Recorded in \nOther  Comprehensive Income                \n                  \nCommercial paper   Level  2  $ 16,589   $ 0  $ 0  $ 16,589   $ 12,231   $ 4,358   $ 0  \nCertificates of deposit   Level  2   2,701    0   0   2,701    2,657    44   0  \nU.S. government securities   Level  1   65,237    2   (3,870 )  61,369    2,991    58,378    0  \nU.S. agency securities   Level  2   2,703    0   0   2,703    894   1,809    0  \nForeign government bonds   Level  2   498   1   (24)  475   0   475   0  \nMortgage - and asset -\nbacked securities   Level  2   824   1   (39)  786   0   786   0  \nCorporate notes and bonds   Level  2   10,809    8   (583)  10,234    0   10,234    0  \nCorporate notes and bonds   Level  3   120   0      \u20090   120   0   120   0  \nMunicipal securities   Level  2   285   1   (18)  268   7   261   0  \nMunicipal securities   Level  3   103   0   (16)  87   0   87   0"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973058-8e1f-11ef-b504-acde48001122
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{"source": "dataset/msft-10-k-2023.pdf", "page": 56, "chroma:document": "Total debt investments    $  \u200999,869   $   13  $ (4,550 ) $ 95,332   $ 18,780   $ 76,552   $ 0                    \n                \nChanges in Fair Value Recorded in \nNet Income                \n                  \nEquity investments  Level  1       $ 10,138   $ 7,446   $  0  $ 2,692   \nEquity investments  Other         7,187    0   0   7,187           \nTotal equity investments          $ 17,325   $ 7,446   $ 0  $ 9,879                   \nCash          $ 8,478   $ 8,478   $ 0  $ 0  \nDerivatives, net (a)          6   0   6   0          \nTotal          $  121,141   $  34,704   $  76,558   $  9,879                     \n \n (In millions)  Fair Value  \nLevel  Adjusted  \nCost  Basis  Unrealized  \nGains  Unrealized  \nLosses  Recorded  \nBasis  Cash  and \nCash  \nEquivalents  Short -term  \nInvestments  Equity  \nInvestments    \n                  \nJune  30, 2022                  \n                \nChanges in Fair Value Recorded in \nOther  Comprehensive Income                \n                  \nCommercial paper   Level  2  $ 2,500   $ 0  $ 0  $ 2,500   $ 2,498   $ 2  $ 0  \nCertificates of deposit   Level  2   2,071    0   0   2,071    2,032    39   0  \nU.S. government securities   Level  1   79,696    29   (2,178 )  77,547    9   77,538    0  \nU.S. agency securities   Level  2   419   0   (9)  410   0   410   0  \nForeign government bonds   Level  2   506   0   (24)  482   0   482   0"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597308a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 56, "chroma:document": "Mortgage - and asset -\nbacked securities   Level  2   727   1   (30)  698   0   698   0  \nCorporate notes and bonds   Level  2   11,661    4   (554)  11,111    0   11,111    0  \nCorporate notes and bonds   Level  3   67   0      \u20090   67   0   67   0  \nMunicipal securities   Level  2   368   19   (13)  374   0   374   0  \nMunicipal securities   Level  3   103   0   (6)  97   0   97   0                \nTotal debt investments    $  \u200998,118   $   53  $ (2,814 ) $  95,357   $  4,539   $  90,818   $    0                    \n                \nChanges in Fair Value Recorded in \nNet Income                \n                  \nEquity investments  Level  1       $ 1,590   $ 1,134   $  0  $ 456  \nEquity investments  Other         6,435    0   0   6,435           \nTotal equity investments          $ 8,025   $ 1,134   $ 0  $ 6,891                   \nCash          $ 8,258   $ 8,258   $ 0  $ 0  \nDerivatives, net (a)          8   0   8   0          \nTotal          $  111,648   $  13,931   $  90,826   $  6,891                     \n(a) Refer to Note 5 \u2013 Derivatives for further information on the fair value of our derivative instruments."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/msft-10-k-2023.pdf", "page": 57, "chroma:document": "57 Equity investments presented as \u201cOther\u201d in the tables above include investments without readily determinable fair values \nmeasured using the equity method or measured at cost with adjustments for observable changes in price or impairments, \nand investments m easured at fair value using net asset value as a practical expedient which are not categorized in the fair \nvalue hierarchy. As of June  30, 2023 and 2022, equity investments without readily determinable fair values measured at \ncost with adjustments for obse rvable changes in price or impairments were $4.2  billion and $3.8  billion, respectively.  \n  \nUnrealized Losses on Debt Investments  \nDebt investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair \nvalues were as follows:  \n  \n  Less than 12 Months  12 Months or Greater    Total  \nUnrealized  \nLosses          \n(In millions)  Fair Value  Unrealized  \nLosses  Fair Value  Unrealized  \nLosses  Total  \nFair Value    \n              \nJune  30, 2023              \n              \nU.S. government and agency securities  $ 7,950   $ (336 ) $ 45,273   $ (3,534  ) $ 53,223    $ (3,870 ) \nForeign government bonds   77   (5 )  391   (19 )  468   (24) \nMortgage - and asset -backed securities   257   (5 )  412   (34 )  669   (39) \nCorporate notes and bonds   2,326    (49 )  7,336    (534 )  9,662    (583) \nMunicipal securities   111   (3 )  186   (31 )  297   (34)             \nTotal  $  10,721   $   (398 ) $  53,598   $   (4,152  ) $  64,319    $ (4,550 )               \n          \n  Less than 12 Months  12 Months or Greater    Total  \nUnrealized  \nLosses          \n(In millions)  Fair Value  Unrealized  \nLosses  Fair Value  Unrealized  \nLosses  Total"}


created_at: 2024-10-19 14:13:57
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{"source": "dataset/msft-10-k-2023.pdf", "page": 57, "chroma:document": "Losses  Fair Value  Unrealized  \nLosses  Total  \nFair Value    \n              \nJune  30, 2022              \n              \nU.S. government and agency securities  $ 59,092   $ (1,835  ) $ 2,210   $ (352 ) $ 61,302    $ (2,187 ) \nForeign government bonds   418   (18 )  27   (6 )  445   (24) \nMortgage - and asset -backed securities   510   (26 )  41   (4 )  551   (30) \nCorporate notes and bonds   9,443    (477 )  786   (77 )  10,229    (554) \nMunicipal securities   178   (12 )  74   (7 )  252   (19)             \nTotal  $  69,641   $   (2,368  ) $  3,138   $   (446 ) $  72,779    $ (2,814 )               \nUnrealized losses from fixed -income securities are primarily attributable to changes in interest rates. Management does not \nbelieve any remaining unrealized losses represent impairments based on our evaluation of available evidence.  \nDebt Investment Maturi ties  \n  \n(In millions)  Adjusted  \nCost  Basis  Estimated  \nFair Value    \n      \nJune  30, 2023      \n      \nDue in one year or less  $ 38,182   $ 38,048   \nDue after one year through five years   47,127    44,490   \nDue after five years through 10 years   13,262    11,628   \nDue after 10 years   1,298    1,166       \nTotal  $  \u200999,869   $  \u200995,332         \n  \nNOTE 5 \u2014 DERIVATIVES  \nWe use derivative instruments to manage risks related to foreign currencies, interest rates, equity prices, and credit; to \nenhance investment returns; and to facilitate portfolio diversification. Our objectives for holding derivatives include reduc ing, \neliminating, and efficiently managing the economic impact of these exposures as effectively as possible. Our derivative"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973120-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 57, "chroma:document": "programs include strategies that both qualify and do not qualify for hedge accounting treatment."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973152-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 58, "chroma:document": "58 Foreign Currencies  \nCertain forecasted tr ansactions, assets, and liabilities are exposed to foreign currency risk. We monitor our foreign currency \nexposures daily to maximize the economic effectiveness of our foreign currency hedge positions.  \nForeign currency risks related to certain non -U.S. do llar-denominated investments are hedged using foreign exchange \nforward contracts that are designated as fair value hedging instruments. Foreign currency risks related to certain Euro -\ndenominated debt are hedged using foreign exchange forward contracts that  are designated as cash flow hedging \ninstruments.  \nCertain options and forwards not designated as hedging instruments are also used to manage the variability in foreign \nexchange rates on certain balance sheet amounts and to manage other foreign currency ex posures.  \nInterest Rate  \nInterest rate risks related to certain fixed -rate debt are hedged using interest rate swaps that are designated as fair value \nhedging instruments to effectively convert the fixed interest rates to floating interest rates.  \nSecurities held in our fixed -income portfolio are subject to different interest rate risks based on their maturities. We manage \nthe average maturity of our fixed -income portfolio to achieve economic returns that correlate to certain broad -based fixed -\nincom e indices using option, futures, and swap contracts. These contracts are not designated as hedging instruments and \nare included in \u201cOther contracts\u201d in the tables below.  \nEquity  \nSecurities held in our equity investments portfolio are subject to market pri ce risk.  At times, we may hold options, futures, \nand swap contracts. These contracts are not designated as hedging instruments.  \nCredit  \nOur fixed -income portfolio is diversified and consists primarily of investment -grade securities. We use credit default swap \ncontracts to manage credit exposures relative to broad -based indices and to facilitate portfolio diversification. These \ncontracts are not designated as hedging instruments and are included in \u201cOther contracts\u201d in the tables below.  \nCredit -Risk -Related  Contingent Features  \nCertain of our counterparty agreements for derivative instruments contain provisions that require our issued and outstanding \nlong-term unsecured debt to maintain an investment grade credit rating and require us to maintain minimum liq uidity of \n$1.0 billion. To the extent we fail to meet these requirements, we will be required to post collateral, similar to the standard"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597317a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 58, "chroma:document": "convention related to over -the-counter derivatives. As of June  30, 2023, our long -term unsecured debt rating was AAA, and \ncash investments were in excess of $1.0  billion. As a result, no collateral was required to be posted.  \n  \nThe following table presents the notional amounts of our outstanding derivative instruments measured in U.S. dollar \nequivalents:  \n  \n(In millions)  June  30, \n2023  June  30, \n2022    \n      \nDesignated as Hedging Instruments      \n      \nForeign exchange contracts purchased  $ 1,492   $ 635  \nInterest rate contracts purchased   1,078    1,139   \n      \nNot Designated as Hedging Instruments      \n      \nForeign exchange contracts purchased   7,874    10,322   \nForeign exchange contracts sold     25,159      21,606   \nEquity contracts purchased   3,867    1,131   \nEquity contracts sold   2,154    0  \nOther contracts purchased   1,224    1,642   \nOther contracts sold   581   544"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59731ac-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 59, "chroma:document": "59 Fair Values of Derivative Instruments  \nThe following table presents our derivative instruments:  \n  \n(In millions)  Derivative  \nAssets  Derivative  \nLiabilities  Derivative  \nAssets  Derivative  \nLiabilities    \n      \n  June  30, \n2023  June  30, \n2022  \n          \nDesignated as Hedging Instruments          \n          \nForeign exchange contracts  $ 34  $ (67) $ 0  $ (77) \nInterest rate contracts   16   0   3   0  \n          \nNot Designated as Hedging Instruments          \n          \nForeign exchange contracts   249   (332)  333   (362) \nEquity contracts   165   (400)  5   (95) \nOther contracts   5   (6)  15   (17)         \nGross amounts of derivatives   469   (805)  356   (551) \nGross amounts of derivatives offset in the balance sheet   (202)  206   (130)  133  \nCash collateral received   0   (125)  0   (75)         \nNet amounts of derivatives  $ 267  $ (724) $ 226  $ (493)           \n          \nReported as          \n          \nShort -term investments  $ 6  $ 0  $ 8  $ 0  \nOther current assets   245   0   218   0  \nOther long -term assets   16   0   0   0  \nOther current liabilities   0   (341)  0   (298) \nOther long -term liabilities   0   (383)  0   (195)         \nTotal  $   267  $   (724) $   226  $   (493)           \nGross derivative assets and liabilities subject to legally enforceable master netting agreements for which we have elected \nto offset were $442  million and $804  million, respectively, as of June  30, 2023, and $343  million and $550  million, \nrespectively, as of June  30, 2022.  \n  \nThe following table presents the fair value of our derivatives instruments on a gross basis:"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59731de-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 59, "chroma:document": "(In millions)  Level  1 Level  2 Level  3 Total    \n          \nJune  30, 2023          \n          \nDerivative assets  $   \u2009\u2007\u20070  $ 462  $   \u2009\u2007\u20077  $ 469  \nDerivative liabilities   0   (805)  0   (805) \n          \nJune  30, 2022          \n          \nDerivative assets   1     \u2009349   6     \u2009356  \nDerivative liabilities   0   (551)  0   (551)   \nGains (losses) on derivative instruments recognized in other income (expense), net were as follows:  \n  \n(In millions)    \n        \nYear Ended June  30, 2023  2022  2021  \n        \nDesignated as Fair Value Hedging Instruments        \n        \nForeign exchange contracts        \nDerivatives  $ 0  $ 49  $ 193  \nHedged items   0   (50)  (188) \nExcluded from effectiveness assessment   0   4   30  \nInterest rate contracts        \nDerivatives   (65)  (92)  (37) \nHedged items   38   108   53"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973210-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 60, "chroma:document": "60 (In millions)  \nDesignated as Cash Flow Hedging Instruments        \n        \nForeign exchange contracts        \nAmount reclassified  from accumulated other comprehensive income     61   (79)  17  \n        \nNot Designated as Hedging Instruments        \n        \nForeign exchange contracts   (73)  383     27  \nEquity contracts   (420)    13   (6) \nOther contracts   (41)  (85)  15    \nGains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were \nas follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nDesignated as Cash Flow Hedging Instruments        \n        \nForeign exchange contracts        \nIncluded in effectiveness assessment  $    34   $   (57) $    34    \nNOTE 6  \u2014 INVENTORIES  \nThe components of inventories were as follows:  \n  \n(In millions)    \n      \nJune  30, 2023  2022  \n      \nRaw materials  $ 709  $ 1,144   \nWork in process   23   82  \nFinished goods   1,768    2,516       \nTotal  $ \u2007\u2007\u2007\u20072,500   $ \u2007\u2007\u2007\u20073,742         \n  \nNOTE 7 \u2014 PROPERTY AND EQUIPMENT  \nThe components of property and equipment were as follows:  \n  \n(In millions)    \n      \nJune  30, 2023  2022  \n      \nLand  $ 5,683   $ 4,734   \nBuildings and improvements    68,465     55,014   \nLeasehold improvements   8,537    7,819   \nComputer equipment and software   74,961    60,631   \nFurniture and equipment   6,246    5,860       \nTotal, at cost   \u2007163,892    134,058   \nAccumulated depreciation   (68,251 )  (59,660 )     \nTotal, net  $ 95,641   $ 74,398"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973242-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 60, "chroma:document": "During fiscal years 2023, 2022, and 2021, depreciation expense was $11.0  billion, $12.6  billion, and $9.3  billion, \nrespectively. Depreciation expense declined in fiscal year 2023 due to the change in estimated useful lives of our server \nand network equipme nt.  \nAs of June  30, 2023, we have committed $13.5  billion for the construction of new buildings, building improvements, and \nleasehold improvements, primarily related to datacenters."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597326a-8e1f-11ef-b504-acde48001122
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metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 61, "chroma:document": "61 NOTE 8 \u2014 BUSINESS COMBINATIONS  \nNuance Communications, Inc.  \nOn March  4, 2022, we completed our acquisition of Nuance Communications, Inc. (\u201cNuance\u201d) for a total purchase price of \n$18.8  billion, consisting primarily of cash. Nuance is a cloud and artificial intelligence (\u201cAI\u201d) software provider with healthcare  \nand enterprise AI  experience, and the acquisition will build on our industry -specific cloud offerings. The financial results of \nNuance have been included in our consolidated financial statements since the date of the acquisition. Nuance is reported \nas part of our Intellige nt Cloud segment.  \nThe allocation of the purchase price to goodwill was completed as of December  31, 2022. The major classes of assets and \nliabilities to which we have allocated the purchase price were as follows:  \n  \n(In millions)      \nGoodwill (a) $ 16,326   \nIntangible assets   4,365   \nOther assets   42  \nOther liabilities (b)  (1,972 )   \nTotal  $    \u2009 18,761       \n(a) Goodwill was assigned to our Intelligent Cloud segment and was primarily attributed to increased synergies that are \nexpected to be achieved from the integration of Nuance. None of the goodwill is expected to be deductible for income \ntax purposes.   \n(b) Includes $986  million of convertible senior notes issued by Nuance in 2015 and 2017, substantially all of which have \nbeen redeemed.   \n  \nFollowing are the details of the purchase price allocated to the intangible assets acquired:  \n  \n(In millions, except average life)  Amount  Weighted  \nAverage  Life   \n      \nCustomer -related  $     2,610    9 years   \nTechnology -based   1,540    5 years   \nMarketing -related   215   4 years       \nTotal  $      4,365    7 years         \nZeniMax Media Inc.  \nOn March  9, 2021, we completed our acquisition of ZeniMax Media Inc. (\u201cZeniMax\u201d), the parent company of Bethesda \nSoftworks LLC (\u201cBethesda\u201d), for a total purchase price of $8.1  billion, consisting primarily of cash. The purchase price"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597329c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 61, "chroma:document": "included $766  million of cash and cash equivalents acquired. Bethesda is one of the largest, privately held game developers \nand publishers in the world, and brings a broad portfolio of games, technology, and talent to Xbox. The financial results of \nZeniMax have been included in  our consolidated financial statements since the date of the acquisition. ZeniMax is reported \nas part of our More Personal Computing segment.  \nThe allocation of the purchase price to goodwill was completed as of December  31, 2021. The major classes of assets and \nliabilities to which we have allocated the purchase price were as follows:  \n  \n(In millions)      \nCash and cash equivalents  $ 766  \nGoodwill   5,510   \nIntangible assets   1,968   \nOther assets   121  \nOther liabilities   (244)   \nTotal  $       8,121"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59732ce-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 62, "chroma:document": "62 Goodwill was assigned to our More Personal Computing segment. The goodwill was primarily attributed to increased \nsynergies that are expected to be achieved from the integration of ZeniMax. None of the goodwill is expected to be \ndeductible for income tax pu rposes.  \nFollowing are details of the purchase price allocated to the intangible assets acquired:  \n  \n(In millions, except average life)  Amount  Weighted  \nAverage  Life   \n      \nTechnology -based  $ 1,341    4 years   \nMarketing -related   627   11 years       \nTotal  $     \u2009 1,968    6 years         \nActivision Blizzard, Inc.  \nOn January  18, 2022, we entered into a definitive agreement to acquire Activision Blizzard, Inc. (\u201cActivision Blizzard\u201d) for \n$95.00 per share in an all -cash transaction valued at $68.7  billion, inclusive of Activision Blizzard\u2019s net cash. Activision \nBlizza rd is a leader in game development and an interactive entertainment content publisher. The acquisition will accelerate \nthe growth in our gaming business across mobile, PC, console, and cloud gaming. The acquisition has been approved by \nActivision Blizzard\u2019 s shareholders. We continue to work toward closing the transaction subject to obtaining required \nregulatory approvals and satisfaction of other customary closing conditions. Microsoft and Activision Blizzard have jointly \nagreed to extend the merger agreeme nt through October  18, 2023 to allow for additional time to resolve remaining \nregulatory concerns.  \n  \nNOTE 9 \u2014 GOODWILL  \nChanges in the carrying amount of goodwill were as follows:  \n  \n(In millions)  June  30, \n2021  Acquisitions  Other  June  30, \n2022  Acquisitions  Other  June  30, \n2023    \nProductivity and Business \nProcesses  $ 24,317   $ 599  $ (105)   $ 24,811   $ 11  $ (47 ) $ 24,775   \nIntelligent Cloud   13,256    16,879    47   30,182    223   64   30,469"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597330a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 62, "chroma:document": "More Personal Computing   12,138    648   (255)  12,531    0   111   12,642                 \nTotal  $\u2007\u200749,711   $\u2007\u200718,126   $ \u2007(313 ) $ \u2007\u200767,524   $ \u2007\u2007234   $ \u2007\u2007128   $ \u200767,886                   \nThe measurement periods for the valuation of assets acquired and liabilities assumed end as soon as information on the \nfacts and circumstances that existed as of the acquisition dates becomes available, but do not exceed 12 months. \nAdjustments in purchase price allocations may require a change in the amounts allocated to goodwill during the periods in \nwhich the adjustments are determined.  \nAny change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are  \npresented as \u201cOther\u201d in the table above. Also included in \u201cOther\u201d are business dispositions and transfers between segments \ndue to reorganizations, as applicable.  \nGoodwill Impairment  \nWe test goodwill for impairment annually on May  1 at the reporting unit  level, primarily using a discounted cash flow \nmethodology with a peer -based, risk -adjusted weighted average cost of capital. We believe use of a discounted cash flow \napproach is the most reliable indicator of the fair values of the businesses.  \nNo instanc es of impairment were identified in our May  1, 2023, May  1, 2022, or May  1, 2021 tests. As of June  30, 2023 and \n2022, accumulated goodwill impairment was $11.3  billion."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597333c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 63, "chroma:document": "63 NOTE 10  \u2014 INTANGIBLE ASSETS  \nThe components of intangible assets, all of which are fin ite-lived, were as follows:  \n  \n(In millions)  Gross  \nCarrying  \nAmount  Accumulated  \nAmortization  Net \nCarrying  \nAmount  Gross  \nCarrying  \nAmount  Accumulated  \nAmortization  Net \nCarrying  \nAmount    \n      \nJune  30, 2023  2022  \n              \nTechnology -based  $ 11,245   $ (7,589 ) $ 3,656   $ 11,277   $ (6,958 ) $ 4,319   \nCustomer -related   7,281    (4,047 )  3,234    7,342    (3,171 )  4,171   \nMarketing -related   4,935    (2,473 )  2,462    4,942    (2,143 )  2,799   \nContract -based   29   (15)  14   16   (7)  9              \nTotal  $  23,490   $  (14,124)   $   9,366   $  23,577   $  (12,279 ) $   11,298                 \nNo material impairments of intangible assets were identified during fiscal years 2023, 2022, or 2021. We estimate that we \nhave no significant residual value related to our intangible assets.  \n  \nThe components of intangible assets acquired during the period s presented were as follows:  \n  \n(In millions)  Amount  Weighted  \nAverage  Life Amount  Weighted  \nAverage  Life   \n          \nYear Ended June  30, 2023    2022    \n          \nTechnology -based  $ 522   7 years   $ 2,611    4 years   \nCustomer -related  0 0 years  2,837  9 years  \nMarketing -related  7 5 years  233 4 years  \nContract -based  12 3 years  0 0 years          \nTotal  $  541   6 years   $  5,681    7 years"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597336e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 63, "chroma:document": "Intangible assets amortization expense was $2.5  billion, $2.0  billion, and $1.6  billion for fiscal years 2023, 2022, and 2021, \nrespectively.  \nThe following table outlines the estimated future amortization expense related to intangible assets held as of Jun e 30, 2023:  \n  \n(In millions)      \n    \nYear Ending June  30,   \n    \n2024  $ 2,363   \n2025   1,881   \n2026   1,381   \n2027   929  \n2028   652  \nThereafter   2,160     \nTotal  $     9,366       \n  \nNOTE 11  \u2014 DEBT  \nThe components of debt were as follows:  \n  \n(In millions, issuance by calendar year)  Maturities  \n(calendar  year)  Stated Interest  \nRate  Effective  \nInterest  \nRate  June  30, \n2023  June  30, \n2022    \n            \n2009 issuance of $3.8  billion   2039    5.20%    5.24%   $ 520  $ 520  \n2010 issuance of $4.8  billion   2040    4.50%    4.57%    486   486  \n2011 issuance of $2.3  billion   2041    5.30%    5.36%    718   718  \n2012 issuance of $2.3  billion   2042    3.50%    3.57%    454   1,204"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59733a0-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 64, "chroma:document": "64 (In millions, issuance by calendar year)  Maturities  \n(calendar  year)  Stated Interest  \nRate  Effective  \nInterest  \nRate  June  30, \n2023  June  30, \n2022  \n2013 issuance of $5.2  billion   2023 \u20132043    3.63% \u20134.88%    3.73% \u20134.92%    1,814    2,814   \n2013 issuance of \u20ac4.1 billion   2028 \u20132033    2.63% \u20133.13%    2.69% \u20133.22%    2,509    2,404   \n2015 issuance of $23.8  billion   2025 \u20132055    2.70% \u20134.75%    2.77% \u20134.78%    9,805    10,805   \n2016 issuance of $19.8  billion   2023 \u20132056    2.00% \u20133.95%    2.10% \u20134.03%    9,430    9,430   \n2017 issuance of $17.0  billion   2024 \u20132057    2.88% \u20134.50%    3.04% \u20134.53%    8,945    8,945   \n2020 issuance of $10.0  billion   2050 \u20132060    2.53% \u20132.68%    2.53% \u20132.68%    10,000    10,000   \n2021 issuance of $8.2  billion   2052 \u20132062    2.92% \u20133.04%    2.92% \u20133.04%    8,185    8,185       \nTotal face value     52,866    55,511   \nUnamortized discount and \nissuance  costs         (438)  (471) \nHedge fair value adjustments (a)        (106)  (68) \nPremium on debt exchange         (5,085 )  (5,191 )     \nTotal debt     47,237    49,781"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59733d2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 64, "chroma:document": "Total debt     47,237    49,781   \nCurrent portion of long -term debt         (5,247 )  (2,749 )     \nLong -term debt    $   41,990   $   47,032               \n(a) Refer to Note 5 \u2013 Derivatives for further information on the interest rate swaps related to fixed -rate debt.   \nAs of June  30, 2023 and 2022, the estimated fair value of long -term debt, including the current portion, was $46.2  billion \nand $50.9  billion, respectively. The estimated fair values are based on Level  2 inputs.  \nDebt in the table above is comprised of seni or unsecured obligations and ranks equally with our other outstanding \nobligations. Interest is paid semi -annually, except for the Euro -denominated debt, which is paid annually. Cash paid for \ninterest on our debt for fiscal years 2023, 2022, and 2021 was $1 .7 billion, $1.9  billion, and $2.0  billion, respectively.  \nThe following table outlines maturities of our long -term debt, including the current portion, as of June  30, 2023:  \n  \n(In millions)      \n    \nYear Ending June  30,   \n    \n2024  $ 5,250   \n2025   2,250   \n2026   3,000   \n2027   8,000   \n2028   0  \nThereafter   34,366     \nTotal  $        52,866       \n  \nNOTE 12  \u2014 INCOME TAXES  \nProvision for Income Taxes  \nThe components of the provision for income taxes were as follows:  \n  \n(In millions)    \n        \nYear Ended June  30, 2023  2022  2021  \n        \nCurrent Taxes        \n        \nU.S. federal  $ 14,009   $ 8,329   $ 3,285   \nU.S. state and local   2,322    1,679    1,229   \nForeign   6,678    6,672    5,467"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973404-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 64, "chroma:document": "Current taxes  $  23,009   $  16,680   $  \u20079,981   \n        \nDeferred Taxes        \n        \nU.S. federal  $ (6,146 ) $ (4,815 ) $ 25  \nU.S. state and local   (477)  (1,062 )  (204)"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973436-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 65, "chroma:document": "65 (In millions)  \nForeign   564   175   29        \nDeferred taxes  $ (6,059 ) $ (5,702 ) $ (150)       \nProvision for income taxes  $ 16,950   $ 10,978   $ 9,831           \nU.S. and foreign components of income before income taxes were as follows:  \n  \n(In millions)    \n        \nYear Ended June  30, 2023  2022  2021  \n        \nU.S. $ 52,917   $ 47,837   $ 34,972   \nForeign   36,394    35,879    36,130         \nIncome before income taxes  $  89,311   $  83,716   $  71,102           \nEffective Tax Rate  \nThe items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective \nrate were as follows:  \n  \n        \nYear Ended June  30, 2023  2022  2021  \n        \nFederal statutory rate   21.0%    21.0%    21.0%   \nEffect of:        \nForeign earnings taxed at lower rates   (1.8)%    (1.3)%    (2.7)%   \nImpact of intangible property transfers   0%   (3.9)%    0%  \nForeign -derived intangible income deduction   (1.3)%    (1.1)%    (1.3)%   \nState income taxes, net of federal benefit   1.6%    1.4%    1.4%   \nResearch and development credit   (1.1)%    (0.9)%    (0.9)%   \nExcess tax benefits relating to stock -based compensation   (0.7)%    (1.9)%    (2.4)%   \nInterest, net   0.8%    0.5%    0.5%   \nOther reconciling items, net   0.5%    (0.7)%    (1.8)%         \nEffective rate     19.0%     13.1%     13.8%"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973620-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 65, "chroma:document": "In the first quarter of fiscal year 2022, we transferred certain intangible properties from our Puerto Rico subsidiary to the  \nU.S. The transfer of intangible properties resulted in a $3.3  billion net income tax benefit in the first quarter of fiscal year \n2022, as the value of future U.S. tax deductions exceeded the current tax liability from the U.S. global intangible low -taxed \nincome (\u201cGILTI\u201d) tax.  \nWe have historically paid India withholding taxes on software sales through distributor withholding and tax audit \nassessments in India. In March 2021, the India Supreme Court ruled favorably in the case of Engineering Analysis Centre \nof Excellence Private Limited vs The Commissioner of Income Tax for companies in 86 separate appeals, some dating back \nto 2012, ho lding that software sales are not subject to India withholding taxes. Although we were not a party to the appeals, \nour software sales in India were determined to be not subject to withholding taxes. Therefore, we recorded a net income \ntax benefit of $620  million in the third quarter of fiscal year 2021 to reflect the results of the India Supreme Court decision \nimpacting fiscal year  1996  through fiscal year  2016.  \nThe decrease from the federal statutory rate in fiscal year 2023 is primarily due to earnings t axed at lower rates in foreign \njurisdictions resulting from producing and distributing our products and services through our foreign regional operations \ncenter in Ireland. The decrease from the federal statutory rate in fiscal year 2022 is primarily due to  the net income tax \nbenefit related to the transfer of intangible properties, earnings taxed at lower rates in foreign jurisdictions resulting fr om \nproducing and distributing our products and services through our foreign regional operations center in Irela nd, and tax \nbenefits relating to stock -based compensation. The decrease from the federal statutory rate in fiscal year 2021 is primarily \ndue to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products an d \nservices through our foreign regional operations centers in Ireland and Puerto Rico, tax benefits relating to stock -based \ncompensation, and tax benefits from the India Supreme Court decision on withholding taxes. In fiscal year 2023, our foreign"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59736f2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 65, "chroma:document": "regional  operating center in Ireland, which is taxed at a rate lower than the U.S. rate, generated 81% of our foreign income"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597376a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 66, "chroma:document": "66 before tax. In fiscal years 2022 and 2021, our foreign regional operating centers in Ireland and Puerto Rico, which are taxed  \nat rates lowe r than the U.S. rate, generated 71% and 82% of our foreign income before tax. Other reconciling items, net \nconsists primarily of tax credits and GILTI tax, and in fiscal year 2021, includes tax benefits from the India Supreme Court \ndecision on withholding taxes. In fiscal years 2023, 2022, and 2021, there were no individually significant other reconciling \nitems.  \nThe increase in our effective tax rate for fiscal year 2023 compared to fiscal year 2022 was primarily due to a $3.3  billion \nnet income tax benefi t in the first quarter of fiscal year 2022 related to the transfer of intangible properties and a decrease \nin tax benefits relating to stock -based compensation. The decrease in our effective tax rate for fiscal year 2022 compared \nto fiscal year 2021 was pr imarily due to a $3.3  billion net income tax benefit in the first quarter of fiscal year 2022 related to \nthe transfer of intangible properties, offset in part by changes in the mix of our income before income taxes between the \nU.S. and foreign countries, a s well as tax benefits in the prior year from the India Supreme Court decision on withholding \ntaxes, an agreement between the U.S. and India tax authorities related to transfer pricing, and final Tax Cuts and Jobs Act \n(\u201cTCJA\u201d) regulations.  \n  \nThe component s of the deferred income tax assets and liabilities were as follows:  \n  \n(In millions)        \n      \nJune  30, 2023  2022  \n      \nDeferred Income Tax Assets      \n      \nStock -based compensation expense  $ 681  $ 601  \nAccruals, reserves, and other expenses   3,131    2,874   \nLoss and credit carryforwards   1,441    1,546   \nAmortization (a)  9,440    10,183   \nLeasing liabilities   5,041    4,557   \nUnearned revenue   3,296    2,876"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973850-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 66, "chroma:document": "Unearned revenue   3,296    2,876   \nBook/tax basis differences in investments and debt   373   0  \nCapitalized research and development (a)  6,958    473  \nOther   489   461      \nDeferred income tax assets   30,850    23,571   \nLess valuation allowance   (939)  (1,012 )     \nDeferred income tax assets, net of valuation allowance  $ 29,911   $ 22,559       \n      \nDeferred Income Tax Liabilities      \n      \nBook/tax basis differences in investments and debt  $ 0  $ (174) \nLeasing assets   (4,680 )  (4,291 ) \nDepreciation   (2,674 )  (1,602 ) \nDeferred tax on foreign earnings   (2,738 )  (3,104 ) \nOther   (89)  (103)     \nDeferred income tax liabilities  $ (10,181 ) $ (9,274 )     \nNet deferred income tax assets  $ 19,730   $ 13,285         \n      \nReported As      \n      \nOther long -term assets  $ 20,163   $ 13,515   \nLong -term deferred income tax liabilities   (433)  (230)     \nNet deferred income tax assets  $   19,730   $   13,285         \n(a) Provisions enacted in the TCJA related to the capitalization for tax purposes of research and development \nexpenditures became effective on July  1, 2022. These provisions require us to capitalize research and development \nexpenditures and amortize them on our U.S. tax return over five or fifteen years, depending on where research is \nconducted.   \nDeferred income tax balances reflect the effects of temporary differences between  the carrying amounts of assets and \nliabilities and their tax bases and are stated at enacted tax rates expected to be in effect when the taxes are paid or \nrecovered."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597399a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 67, "chroma:document": "67 As of June  30, 2023, we had federal, state, and foreign net operating loss carryforwards  of $509  million, $1.2  billion, and \n$2.3 billion, respectively. The federal and state net operating loss carryforwards have varying expiration dates ranging from \nfiscal year 2024 to 2043 or indefinite carryforward periods, if not utilized. The majority of our foreign net operating loss \ncarryforwards do not expire. Certain acquired net operating loss carryforwards are subject to an annual limitation but are \nexpected to be realized with the exception of those which have a valuation allowance. As of June  30, 2 023, we had \n$456  million federal capital loss carryforwards for U.S. tax purposes from our acquisition of Nuance. The federal capital loss \ncarryforwards are subject to an annual limitation and will expire in fiscal year 2025.  \nThe valuation allowance discl osed in the table above relates to the foreign net operating loss carryforwards, federal capital \nloss carryforwards, and other net deferred tax assets that may not be realized.  \n  \nIncome taxes paid, net of refunds, were $23.1  billion, $16.0  billion, and $1 3.4 billion in fiscal years 2023, 2022, and 2021, \nrespectively.  \nUncertain Tax Positions  \nGross unrecognized tax benefits related to uncertain tax positions as of June  30, 2023, 2022, and 2021, were $17.1  billion, \n$15.6  billion, and $14.6  billion, respectively, which were primarily included in long -term income taxes in our consolidated \nbalance sheets. If recognized, the resulting tax benefit would affect our effective tax rates for fiscal years 2023, 2022, and \n2021 by $14.4  billion, $13.3  billion, and $12.5  billion, respectively.  \nAs of June  30, 2023, 2022, and 2021, we had accrued interest expe nse related to uncertain tax positions of $5.2  billion,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59739e0-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 67, "chroma:document": "$4.3 billion, and $4.3  billion, respectively, net of income tax benefits. The provision for income taxes for fiscal years 2023, \n2022, and 2021 included interest expense related to uncertain tax positi ons of $918  million, $36  million, and $274  million, \nrespectively, net of income tax benefits.  \nThe aggregate changes in the gross unrecognized tax benefits related to uncertain tax positions were as follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nBeginning unrecognized tax benefits  $ 15,593   $ 14,550   $ 13,792   \nDecreases related to settlements   (329)  (317)  (195) \nIncreases for tax positions related to the current year   1,051    1,145    790  \nIncreases for tax positions related to prior years   870   461   461  \nDecreases for tax positions related to prior years   (60)  (246)  (297) \nDecreases due to lapsed statutes of limitations   (5)  0   (1)       \nEnding unrecognized tax benefits  $  17,120   $  15,593   $  14,550           \nWe settled a portion of the Internal Revenue Service (\u201cIRS\u201d) audit for tax years 2004 to 2006 in fiscal year 2011. In Februar y \n2012, the IRS withdrew its 2011 Revenue Agents Report related to unresolved issues for tax years 2004 to 2006 and \nreopened the au dit phase of the examination. We also settled a portion of the IRS audit for tax years 2007 to 2009 in fiscal \nyear 2016, and a portion of the IRS audit for tax years 2010 to 2013 in fiscal year 2018. In the second quarter of fiscal yea r \n2021, we settled an  additional portion of the IRS audits for tax years 2004 to 2013 and made a payment of $1.7  billion, \nincluding tax and interest. We remain under audit for tax years 2004 to 2017."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973a1c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 67, "chroma:document": "As of June  30, 2023, the primary unresolved issues for the IRS audits relate  to transfer pricing, which could have a material \nimpact in our consolidated financial statements when the matters are resolved. We believe our allowances for income tax \ncontingencies are adequate. We have not received a proposed assessment for the unresol ved key transfer pricing issues. \nWe do not expect a final resolution of these issues in the next 12 months.  Based on the information currently available, we \ndo not anticipate a significant increase or decrease to our tax contingencies for these issues with in the next 12 months.  \nWe are subject to income tax in many jurisdictions outside the U.S. Our operations in certain jurisdictions remain subject to  \nexamination for tax years 1996 to 2022, some of which are currently under audit by local tax authorities. The resolution of \neach of these audits is not expected to be material to our consolidated financial statements."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973a58-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 68, "chroma:document": "68 NOTE 13 \u2014 UNEARNED REVENUE  \nUnearned revenue by segment was as follows:  \n  \n(In millions)        \n      \nJune  30, 2023  2022  \n      \nProductivity and Business Processes  $ 27,572   $ 24,558   \nIntelligent Cloud   21,563    19,371   \nMore Personal Computing   4,678    4,479       \nTotal  $   53,813   $   48,408         \nChanges in unearned revenue were as follows:  \n  \n(In millions)      \n    \nYear Ended June  30, 2023    \n    \nBalance, beginning of period  $ 48,408   \nDeferral of revenue   123,935   \nRecognition of unearned revenue   (118,530 )   \nBalance, end of period  $   53,813       \nRevenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be \ninvoiced and recognized as revenue in future periods, was $229  billion as of June  30, 2023, of which $224  billion is related \nto the commercial portion of revenue. We expect to recognize approximately 45% of this revenue over the next 12 months \nand the remainder thereafter.  \nNOTE 14  \u2014 LEASES  \nWe have operating and finance leases for datacenters, corporate offices, research and development faciliti es, Microsoft \nExperience Centers, and certain equipment. Our leases have remaining lease terms of less than 1 year to 18 years, some \nof which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases \nwithin 1 year.  \nThe components of lease expense were as follows:  \n  \n(In millions)      \n        \nYear Ended June  30, 2023  2022  2021  \n        \nOperating lease cost  $  2,875   $  2,461   $  2,127           \nFinance lease cost:        \nAmortization of right-of-use assets  $ 1,352   $ 980  $ 921  \nInterest on lease liabilities   501   429   386"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973a80-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 68, "chroma:document": "Interest on lease liabilities   501   429   386        \nTotal finance lease cost  $ 1,853   $ 1,409   $ 1,307           \n  \nSupplemental cash flow information related to leases was as follows:  \n  \n(In millions)      \n        \nYear Ended June  30, 2023  2022  2021  \n        \nCash paid for amounts included in the measurement of lease liabilities:        \nOperating cash flows from operating leases  $  2,706   $  2,368   $  2,052   \nOperating cash flows from finance leases   501   429   386  \nFinancing cash flows from finance leases   1,056    896   648  \n        \nRight -of-use assets obtained in exchange for lease obligations:        \nOperating leases   3,514    5,268    4,380   \nFinance leases   3,128    4,234    3,290"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973ab2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
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{"source": "dataset/msft-10-k-2023.pdf", "page": 69, "chroma:document": "69 Supplemental balance sheet information related to leases was as follows:  \n  \n(In millions, except lease term and discount rate)        \n      \nJune  30, 2023  2022  \n      \nOperating Leases      \n      \nOperating lease right -of-use assets  $  \u200714,346   $  \u200713,148         \nOther current liabilities  $ 2,409   $ 2,228   \nOperating lease liabilities   12,728    11,489       \nTotal operating lease liabilities  $ 15,137   $ 13,717         \n      \nFinance Leases      \n      \nProperty and equipment, at cost  $ 20,538   $ 17,388   \nAccumulated depreciation   (4,647 )  (3,285 )     \nProperty and equipment, net  $ 15,891   $ 14,103         \nOther current liabilities  $ 1,197   $ 1,060   \nOther long -term liabilities   15,870    13,842       \nTotal finance lease liabilities  $ 17,067   $ 14,902         \n      \nWeighted Average Remaining Lease Term      \n      \nOperating leases   8 years    8 years   \nFinance leases   11 years    12 years   \n      \nWeighted Average Discount Rate      \n      \nOperating leases   2.9%    2.1%   \nFinance leases   3.4%    3.1%     \n  \nThe following table outlines maturities of our lease liabilities as of June  30, 2023:  \n  \n(In millions)        \n      \nYear Ending June  30, Operating  \nLeases  Finance  \nLeases  \n      \n2024  $ 2,784   $ 1,747   \n2025   2,508    2,087   \n2026   2,142    1,771   \n2027   1,757    1,780   \n2028   1,582    1,787   \nThereafter   6,327    11,462       \nTotal lease payments   17,100    20,634   \nLess imputed interest   (1,963 )  (3,567 )"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973ae4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 69, "chroma:document": "Total  $  \u2007\u200915,137   $  \u2007\u200917,067         \nAs of June  30, 2023, we have additional operating and finance leases, primarily for datacenters, that have not yet \ncommenced of $7.7  billion and $34.4  billion, respectively. These operating and finance leases will commence between fiscal \nyear 2024 and fisc al year 2030 with lease terms of 1 year to 18 years.  \nNOTE 15 \u2014 CONTINGENCIES  \nU.S. Cell Phone Litigation  \nMicrosoft Mobile Oy, a subsidiary of Microsoft, along with other handset manufacturers and network operators, is a \ndefendant in 46 lawsuits, including 45 lawsuits filed in the Superior Court for the District of Columbia by individual plaint iffs \nwho allege that radio emissions from cellular handsets caused their brain tumors and other adverse health effects. We \nassumed responsibility for these claims in our agreement to acquire Nokia\u2019s Devices and Services business and have been \nsubstituted for the Nokia def endants. Nine of these cases were filed in 2002 and are consolidated for certain pre -trial \nproceedings; the remaining cases are stayed. In a separate 2009 decision, the Court of Appeals for the District of Columbia"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973b20-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 70, "chroma:document": "70 held that adverse health effect claims ar ising from the use of cellular handsets that operate within the U.S. Federal \nCommunications Commission radio frequency emission guidelines (\u201cFCC Guidelines\u201d) are pre -empted by federal law. The \nplaintiffs allege that their handsets either operated outside t he FCC Guidelines or were manufactured before the FCC \nGuidelines went into effect. The lawsuits also allege an industry -wide conspiracy to manipulate the science and testing \naround emission guidelines.  \nIn 2013, the defendants in the consolidated cases mov ed to exclude the plaintiffs\u2019 expert evidence of general causation on \nthe basis of flawed scientific methodologies. In 2014, the trial court granted in part and denied in part the defendants\u2019 mot ion \nto exclude the plaintiffs\u2019 general causation experts. The  defendants filed an interlocutory appeal to the District of Columbia \nCourt of Appeals challenging the standard for evaluating expert scientific evidence. In October 2016, the Court of Appeals \nissued its decision adopting the standard advocated by the defe ndants and remanding the cases to the trial court for further \nproceedings under that standard. The plaintiffs have filed supplemental expert evidence, portions of which were stricken by \nthe court. A hearing on general causation took place in September of 2 022. In April of 2023, the court granted defendants\u2019 \nmotion to strike the testimony of plaintiffs\u2019 experts that cell phones cause brain cancer and entered an order excluding all of \nplaintiffs\u2019 experts from testifying.  \nIrish Data Protection Commission Matt er  \nIn 2018, the Irish Data Protection Commission (\u201cIDPC\u201d) began investigating a complaint against LinkedIn as to whether \nLinkedIn\u2019s targeted advertising practices violated the recently implemented European Union General Data Protection \nRegulation (\u201cGDPR\u201d) . Microsoft cooperated throughout the period of inquiry. In April 2023, the IDPC provided LinkedIn with \na non -public preliminary draft decision alleging GDPR violations and proposing a fine. Microsoft intends to challenge the \npreliminary draft decision. Th ere is no set timeline for the IDPC to issue a final decision.  \nOther Contingencies  \nWe also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our busines s. \nAlthough management currently believes that  resolving claims against us, individually or in aggregate, will not have a"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973b48-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 70, "chroma:document": "material adverse impact in our consolidated financial statements, these matters are subject to inherent uncertainties and \nmanagement\u2019s view of these matters may change in the futur e.  \nAs of June  30, 2023, we accrued aggregate legal liabilities of $617  million. While we intend to defend these matters \nvigorously, adverse outcomes that we estimate could reach approximately $600  million in aggregate beyond recorded \namounts are reasonabl y possible. Were unfavorable final outcomes to occur, there exists the possibility of a material \nadverse impact in our consolidated financial statements for the period in which the effects become reasonably estimable.  \nNOTE 16  \u2014 STOCKHOLDERS\u2019 EQUITY  \nShare s Outstanding  \nShares of common stock outstanding were as follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nBalance, beginning of year   7,464    7,519    7,571   \nIssued   37   40   49  \nRepurchased   (69)  (95)  (101)       \nBalance, end of year    7,432     7,464     7,519           \nShare Repurchases  \nOn September  18, 2019, our Board of Directors approved a share repurchase program authorizing up to $40.0  billion in \nshare repurchases. This share repurchase program commenced in February 2020 and was completed in November 2021."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973b7a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 71, "chroma:document": "71 On September  14, 2021, our Board of Directors approved a share repurchase program authorizing up to $60.0  billion in \nshare repurchases. This share repurchase program commenced in November 2021, following completion of the program \napproved on September  18, 2019, has no expiration date, and may be terminated at any time. As of June  30, 2023, \n$22.3  billion remained of this $60.0  billion share repurchase program.  \nWe repurchased the following shares of common stock under the share repurchase programs:  \n  \n(In mi llions)  Shares  Amount  Shares  Amount  Shares  Amount    \n        \nYear Ended June  30, 2023  2022  2021  \n              \nFirst Quarter   17  $ 4,600    21  $ 6,200    25  $ 5,270   \nSecond Quarter   20   4,600    20   6,233    27   5,750   \nThird Quarter   18   4,600    26   7,800    25   5,750   \nFourth Quarter   14   4,600    28   7,800    24   6,200               \nTotal    69  $  18,400     95  $  28,033     101  $  22,970                 \n  \nAll repurchases were made using cash resources. Shares repurchased during fiscal year 2023 and the fourth and third \nquarters of fiscal year 2022 were under the share repurchase program approved on September  14, 2021. Shares \nrepurchased during the second qu arter of fiscal year 2022 were under the share repurchase programs approved on both \nSeptember  14, 2021 and September  18, 2019. All other shares repurchased were under the share repurchase program \napproved on September  18, 2019. The above table excludes sha res repurchased to settle employee tax withholding related"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973bac-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 71, "chroma:document": "to the vesting of stock awards of $3.8  billion, $4.7  billion, and $4.4  billion for fiscal years 2023, 2022, and 2021, respectively.  \nDividends  \nOur Board of Directors declared the following dividen ds:  \n  \nDeclaration Date  Record Date  Payment  Date  Dividend  \nPer Share  Amount    \n          \nFiscal Year 2023        (In millions)  \n          \nSeptember  20, 2022  November  17, 2022  December  8, 2022  $ 0.68  $ 5,066   \nNovember  29, 2022  February  16, 2023  March  9, 2023   0.68   5,059   \nMarch  14, 2023  May 18, 2023  June  8, 2023   0.68   5,054   \nJune  13, 2023  August  17, 2023  September  14, 2023   0.68   5,054   \n  \nTotal      $ 2.72  $ 20,233   \n          \n          \nFiscal Year 2022          \n          \nSeptember  14, 2021  November  18, 2021  December  9, 2021  $ 0.62  $ 4,652   \nDecember  7, 2021  February  17, 2022  March  10, 2022   0.62   4,645   \nMarch  14, 2022  May 19, 2022  June  9, 2022   0.62   4,632   \nJune  14, 2022  August  18, 2022  September  8, 2022   0.62   4,621   \n  \n          \nTotal      $  2.48  $   18,550   \n          \nThe dividend declared on June  13, 2023 was included in other current liabilities as of June  30, 2023."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973be8-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 72, "chroma:document": "72 NOTE 17 \u2014 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)  \nThe following table summarizes the changes in accumulated other comprehensive income (loss) by component:  \n  \n(In millions)      \n        \nYear Ended June  30, 2023  2022  2021  \n        \nDerivatives        \n        \nBalance, beginning of period  $ (13) $ (19) $ (38) \nUnrealized gains (losses), net of tax of $9, $(15), and $9        34   (57)    34  \nReclassification adjustments for (gains) losses included in other income \n(expense), net   (61)    79   (17) \nTax expense (benefit) included in provision for income taxes   13   (16)  2        \nAmounts reclassified from accumulated other comprehensive income \n(loss)   (48)  63   (15)       \nNet change related to derivatives, net of tax of $(4), $1, and $7   (14)  6   19        \nBalance, end of period  $ (27) $ (13) $ (19)       \n        \nInvestments        \n        \nBalance, beginning of period  $ (2,138 ) $ 3,222   $ 5,478   \nUnrealized losses, net of tax of $(393) , $(1,440), and $(589)   (1,523 )  (5,405 )  (2,216 ) \nReclassification adjustments for (gains) losses included in other income \n(expense), net   99   57   (63) \nTax expense (benefit) included in provision for income taxes   (20)  (12)  13        \nAmounts reclassified from accumulated other comprehensive income \n(loss)   79   45   (50)       \nNet change related to investments, net of tax of $(373) , $(1,428), and \n$(602)   (1,444 )  (5,360 )  (2,266 ) \nCumulative effect of accounting changes   0   0   10        \nBalance, end of period  $ (3,582 ) $ (2,138 ) $ 3,222"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973c1a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 72, "chroma:document": "Translation Adjustments and Other        \n        \nBalance, beginning of period  $ (2,527 ) $ (1,381 ) $ (2,254 ) \nTranslation adjustments and other, net of tax of $0, $0, and $(9)   (207)  (1,146 )  873        \nBalance, end of period  $ (2,734 ) $ (2,527 ) $ (1,381 )       \nAccumulated other comprehensive income (loss), end of period  $ (6,343 ) $ (4,678 ) $ 1,822           \nNOTE 18 \u2014 EMPLOYEE STOCK AND SAVINGS PLANS  \nWe grant stock -based compensation to employees and directors. Awards that expire or are canceled without delivery of \nshares generally become available for issuance under the plans. We issue new shares of Microsoft common stock to satisfy \nvesting of awards granted under our stock plans. We also have an ESPP for all eligible employees.  \nStock -based compensation expense and related income tax benefits were as follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nStock -based compensation expense  $  9,611   $  7,502   $  6,118   \nIncome tax benefits related to stock -based compensation   1,651    1,293    1,065     \n  \nStock Plans  \nStock awards entitle the holder to receive shares of Microsoft common stock as the award vests. Stock awards generally \nvest over a service period of four years or five years."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973c4c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 73, "chroma:document": "73 Executive Incentive Plan  \nUnder the Executive Incentive Plan, the Compensation C ommittee approves stock awards to executive officers and certain \nsenior executives. RSUs generally vest ratably over a service period of four years. PSUs generally vest over a performance \nperiod of three years. The number of shares the PSU holder receives is based on the extent to which the corresponding \nperformance goals have been achieved.  \nActivity for All Stock Plans  \nThe fair value of stock awards was estimated on the date of grant using the following assumptions:  \n  \n        \nYear ended June  30, 2023  2022  2021  \n        \nDividends per share (quarterly amounts)  $  0.62\u2009 \u2013\u2009\u20090.68   $  0.56\u2009 \u2013\u2009\u20090.62   $  0.51\u2009 \u2013\u2009\u20090.56   \nInterest rates   2.0%\u2009 \u2013\u20095.4%    0.03%\u2009 \u2013\u20093.6%    0.01%\u2009 \u2013\u20091.5%     \nDuring fiscal year 2023, the following activity occurred under our stock plans:  \n  \nShares  Weighted  Average  \nGrant -Date  Fair Value    \n    \n(In millions)    \n  \nStock Awards  \n      \nNonvested balance, beginning of year     93  $ 227.59   \nGranted (a)  56   252.59   \nVested   (44)  206.90   \nForfeited   (9)  239.93       \nNonvested balance, end of year   96  $      250.37         \n(a) Includes 1  million, 1  million, and 2  million of PSUs granted at target and performance adjustments above target levels \nfor fiscal years 2023, 2022, and 2021, respectively.   \nAs of June  30, 2023, total unrecognized compensation costs related to stock awards were $18.6  billion. These costs are \nexpected to be recognized over a weighted average period of three years. The weighted average grant -date fair value of"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973c7e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 73, "chroma:document": "stock awards grant ed was $252.59, $291.22, and $221.13 for fiscal years 2023, 2022, and 2021, respectively. The fair value \nof stock awards vested was $11.9  billion, $14.1  billion, and $13.4  billion, for fiscal years 2023, 2022, and 2021, respectively. \nAs of June  30, 2023, a n aggregate of 164  million shares were authorized for future grant under our stock plans.  \nEmployee Stock Purchase Plan  \nWe have an ESPP for all eligible employees. Shares of our common stock may be purchased by employees at three -month \nintervals at 90% of  the fair market value on the last trading day of each three -month period. Employees may purchase \nshares having a value not exceeding 15% of their gross compensation during an offering period.  \n  \nEmployees purchased the following shares during the periods presented:  \n  \n(Shares in millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nShares purchased   7   7   8  \nAverage price per share  $  245.59   $  259.55   $  207.88     \nAs of June  30, 2023, 74  million shares of our common stock were reserved for future issuance through the ESPP.  \nSavings Plans  \nWe have savings plans in the U.S. that qualify under Section  401(k) of the Internal Revenue Code, and a number of savings \nplans i n international locations. Eligible U.S. employees may contribute a portion of their salary into the savings plans,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973cb0-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 74, "chroma:document": "74 subject to certain limitations. We match a portion of each dollar a participant contributes into the plans. Employer -funded \nretirement benef its for all plans were $1.6  billion, $1.4  billion, and $1.2  billion in fiscal years 2023, 2022, and 2021, \nrespectively, and were expensed as contributed.  \nNOTE 19  \u2014 SEGMENT INFORMATION AND GEOGRAPHIC DATA  \nIn its operation of the business, management, incl uding our chief operating decision maker, who is also our Chief Executive \nOfficer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis \nnot consistent with GAAP. During the periods presented, we  reported our financial performance based on the following \nsegments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.  \nWe have recast certain prior period amounts to conform to the way we internally manage and monitor ou r business.  \nOur reportable segments are described below.  \nProductivity and Business Processes  \nOur Productivity and Business Processes segment consists of products and services in our portfolio of productivity, \ncommunication, and information services, spa nning a variety of devices and platforms. This segment primarily comprises:  \n\u2022 Office Commercial (Office 365 subscriptions, the Office 365 portion of Microsoft 365 Commercial subscriptions, \nand Office licensed on -premises), comprising Office, Exchange, Sha rePoint, Microsoft Teams, Office 365 \nSecurity and Compliance, Microsoft Viva, and Microsoft 365 Copilot.  \n\u2022 Office Consumer, including Microsoft 365 Consumer subscriptions, Office licensed on -premises, and other \nOffice services.  \n\u2022 LinkedIn, including Tale nt Solutions, Marketing Solutions, Premium Subscriptions, and Sales Solutions.  \n\u2022 Dynamics business solutions, including Dynamics 365, comprising a set of intelligent, cloud -based applications \nacross ERP, CRM (including Customer Insights), Power Apps, and Power Automate; and on -premises ERP \nand CRM applications.  \nIntelligent Cloud  \nOur Intelligent Cloud segment consists of our public, private, and hybrid server products and cloud services that can power \nmodern business and developers. This segment primarily comprises:  \n\u2022 Server products and cloud services, including Azure and other c loud services; SQL Server, Windows Server,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973ce2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 74, "chroma:document": "Visual Studio, System Center, and related Client Access Licenses (\u201cCALs\u201d); and Nuance and GitHub.  \n  \n\u2022 Enterprise Services, including Enterprise Support Services, Industry Solutions (formerly Microsoft Consulting \nServices), and Nuance professional services.  \nMore Personal Computing  \nOur More Personal Computing segment consists of products and services that put customers at the center of the experience \nwith our technology. This segment primarily comprises:  \n\u2022 Window s, including Windows OEM licensing and other non -volume licensing of the Windows operating system; \nWindows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, \nand other Windows commercial offerings; patent licen sing; and Windows Internet of Things.  \n\u2022 Devices, including Surface, HoloLens, and PC accessories.  \n\u2022 Gaming, including Xbox hardware and Xbox content and services, comprising first - and third -party content \n(including games and in -game content), Xbox Game Pass and other subscriptions, Xbox Cloud Gaming, \nadvertising, third -party disc royalties, and other cloud services.  \n\u2022 Search and news advertising, comprising Bing (including Bing Chat), Microsoft News, Microsoft Edge, and \nthird-party affiliates."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973d14-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 75, "chroma:document": "75 Revenue and costs are generally directly attributed to our segments. However, due to the integrated structure of our \nbusiness, certain revenue recognized and costs incurred by one segment may benefit other segments. Revenue from \ncertain contracts is allocated amon g the segments based on the relative value of the underlying products and services, \nwhich can include allocation based on actual prices charged, prices when sold separately, or estimated costs plus a profit \nmargin. Cost of revenue is allocated in certain c ases based on a relative revenue methodology. Operating expenses that \nare allocated primarily include those relating to marketing of products and services from which multiple segments benefit \nand are generally allocated based on relative gross margin.  \nIn addition, certain costs are incurred at a corporate level and allocated to our segments. These allocated costs generally \ninclude legal, including settlements and fines, information technology, human resources, finance, excise taxes, field selling , \nshared f acilities services, customer service and support, and severance incurred as part of a corporate program. Each \nallocation is measured differently based on the specific facts and circumstances of the costs being allocated and is generall y \nbased on relative g ross margin or relative headcount.  \nSegment revenue and operating income were as follows during the periods presented:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nRevenue        \n        \nProductivity and Business Processes  $ 69,274   $ 63,364   $ 53,915   \nIntelligent Cloud   87,907    74,965    59,728   \nMore Personal Computing   54,734    59,941    54,445         \nTotal  $  211,915   $  198,270   $  168,088           \n  \nOperating Income  \n        \nProductivity and Business Processes  $ 34,189   $ 29,690   $ 24,351   \nIntelligent Cloud   37,884    33,203    26,471   \nMore Personal Computing   16,450    20,490    19,094         \nTotal  $ 88,523   $ 83,383   $ 69,916"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973d46-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 75, "chroma:document": "No sales to an individual customer or country other than the United States accounted for more than 10% of revenue for \nfiscal years 2023, 2022, or 2021. Revenue, classified by the major geographic areas in which our customers were located, \nwas as follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nUnited States (a) $ 106,744   $ 100,218   $ 83,953   \nOther countries   105,171    98,052    84,135         \nTotal  $  211,915   $  198,270   $  168,088           \n(a) Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the \nimpracticability of determining the geographic source of the revenue.  \nRevenue, classified by significant product and service offerings, was  as follows:  \n  \n(In millions)          \n        \nYear Ended June  30, 2023  2022  2021  \n        \nServer products and cloud services  $ 79,970   $ 67,350   $ 52,589   \nOffice products and cloud services   48,728    44,862    39,872   \nWindows   21,507    24,732    22,488   \nGaming   15,466    16,230    15,370   \nLinkedIn   15,145    13,816    10,289   \nSearch and news advertising   12,208    11,591    9,267   \nEnterprise Services   7,722    7,407    6,943   \nDevices   5,521    7,306    7,143"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973d78-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 76, "chroma:document": "76 (In millions)        \nDynamics   5,437    4,687    3,754   \nOther   211   289   373        \nTotal  $  211,915   $  198,270   $  168,088           \nOur Microsoft Cloud revenue, which includes Azure and other cloud services, Office 365 Commercial, the commercial \nportion of LinkedIn, Dynamics 365, and other commercial cloud properties, was $111.6  billion, $91.4  billion, and $69.1  billion \nin fiscal years  2023, 2022, and 2021, respectively. These amounts are primarily included in Server products and cloud \nservices, Office products and cloud services, LinkedIn, and Dynamics in the table above.  \nAssets are not allocated to segments for internal reporting pre sentations. A portion of amortization and depreciation is \nincluded with various other costs in an overhead allocation to each segment. It is impracticable for us to separately identif y \nthe amount of amortization and depreciation by segment that is included  in the measure of segment profit or loss.  \nLong -lived assets, excluding financial instruments and tax assets, classified by the location of the controlling statutory \ncompany and with countries over 10% of the total shown separately, were as follows:  \n  \n(In millions)          \n        \nJune  30, 2023  2022  2021  \n        \nUnited States  $ 114,380   $ 106,430   $ 76,153   \nIreland   16,359    15,505    13,303   \nOther countries   56,500    44,433    38,858         \nTotal  $   187,239   $   166,368   $   128,314"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973daa-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 77, "chroma:document": "77 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  \nTo the Stockholders and the Board of Directors of Microsoft Corporation  \nOpinion on the Financial Statements  \nWe have audited the accompanying consolidated balance sheets of Microsoft Corporation and subsidiaries (the \u201cCompany\u201d) \nas of June  30, 2023 and 2022, the related consolidated statements of income, comprehensive income, cash flows, and \nstockholders\u2019 equity, for each of the three years in the period ended June  30, 2023, and the related notes (collectively \nreferred to as the \u201cfinancial statements\u201d). In our opinion, the financial statements present fairly, in all material respects , the \nfinancial position of the Company as of June  30, 2023 and 2022, and the results of its operations and its cash flows for each \nof the three years in the period ended June  30, 2023, in conformity with accounting principles generally accepted in the \nUnited States of America.  \nWe have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) \n(PCAOB), the Company\u2019s internal control over financial reporting as of June  30, 2023, based on criteria established in \nInternal Control \u2014 Integr ated Framework (2013)  issued by the Committee of Sponsoring Organizations of the Treadway \nCommission and our report dated July  27, 2023, expressed an unqualified opinion on the Company\u2019s internal control over \nfinancial reporting.  \nBasis for Opinion  \nThese financial statements are the responsibility of the Company\u2019s management. Our responsibility is to express an opinion \non the Company\u2019s financial statements based on our audits. We are a public accounting firm registered with the PCAOB \nand are required to be  independent with respect to the Company in accordance with the U.S. federal securities laws and \nthe applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.  \nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform \nthe audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether \ndue to error or fraud. Our audits included performing procedures to assess th e risks of material misstatement of the financial"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973ddc-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 77, "chroma:document": "statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included \nexamining, on a test basis, evidence regarding the amounts and disclosures in the f inancial statements. Our audits also \nincluded evaluating the accounting principles used and significant estimates made by management, as well as evaluating \nthe overall presentation of the financial statements. We believe that our audits provide a reasonabl e basis for our opinion.  \nCritical Audit Matters  \nThe critical audit matters communicated below are matters arising from the current -period audit of the financial statements \nthat were communicated or required to be communicated to the audit committee and t hat (1)  relate to accounts or \ndisclosures that are material to the financial statements and (2)  involved our especially challenging, subjective, or complex \njudgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, \ntaken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the \ncritical audit matters or on the accounts or disclosures to which they relate.  \nRevenue Recognition \u2013 Refer to Not e 1 to the financial statements   \nCritical Audit Matter Description  \nThe Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that \nreflects the consideration the Company expects to receive in exchange for those products or services. The Company offers \ncustomers the a bility to acquire multiple licenses of software products and services, including cloud -based services, in its \ncustomer agreements through its volume licensing programs.  \n  \nSignificant judgment is exercised by the Company in determining revenue recognition for these customer agreements, and \nincludes the following:  \n\u2022 Determination of whether products and services are considered distinct performance obligations that should be \naccounted for separately versus together, such as software licenses and related serv ices that are sold with cloud -based \nservices."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973e04-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 78, "chroma:document": "78 \u2022 The pattern of delivery (i.e., timing of when revenue is recognized) for each distinct performance obligation.  \n\u2022 Identification and treatment of contract terms that may impact the timing and amount of reven ue recognized (e.g., \nvariable consideration, optional purchases, and free services).  \n\u2022 Determination of stand -alone selling prices for each distinct performance obligation and for products and services that \nare not sold separately.  \nGiven these factors an d due to the volume of transactions, the related audit effort in evaluating management\u2019s judgments \nin determining revenue recognition for these customer agreements was extensive and required a high degree of auditor \njudgment.  \nHow the Critical Audit Matter  Was Addressed in the Audit  \nOur principal audit procedures related to the Company\u2019s revenue recognition for these customer agreements included the \nfollowing:  \n\u2022 We tested the effectiveness of controls related to the identification of distinct performance obligations, the determination \nof the timing of revenue recognition, and the estimation of variable consideration.  \n\u2022 We evaluated management\u2019s significant accoun ting policies related to these customer agreements for reasonableness.  \n\u2022 We selected a sample of customer agreements and performed the following procedures:  \n- Obtained and read contract source documents for each selection, including master agreements, an d other documents \nthat were part of the agreement.  \n- Tested management\u2019s identification and treatment of contract terms.  \n- Assessed the terms in the customer agreement and evaluated the appropriateness of management\u2019s application of \ntheir accounting poli cies, along with their use of estimates, in the determination of revenue recognition conclusions.  \n\u2022 We evaluated the reasonableness of management\u2019s estimate of stand -alone selling prices for products and services \nthat are not sold separately.  \n\u2022 We tested  the mathematical accuracy of management\u2019s calculations of revenue and the associated timing of revenue \nrecognized in the financial statements.  \nIncome Taxes \u2013 Uncertain Tax Positions \u2013 Refer to Note 12 to the financial statements   \nCritical Audit Matter De scription  \nThe Company\u2019s long -term income taxes liability includes uncertain tax positions related to transfer pricing issues that remain \nunresolved with the Internal Revenue Service (\u201cIRS\u201d). The Company remains under IRS audit, or subject to IRS audit, fo r \ntax years subsequent to 2003. While the Company has settled a portion of the IRS audits, resolution of the remaining"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973e36-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 78, "chroma:document": "matters could have a material impact on the Company\u2019s financial statements.  \nConclusions on recognizing and measuring uncertain tax posit ions involve significant estimates and management judgment \nand include complex considerations of the Internal Revenue Code, related regulations, tax case laws, and prior -year audit \nsettlements. Given the complexity and the subjective nature of the transfer  pricing issues that remain unresolved with the \nIRS, evaluating management\u2019s estimates relating to their determination of uncertain tax positions required extensive audit \neffort and a high degree of auditor judgment, including involvement of our tax specia lists.  \n  \nHow the Critical Audit Matter Was Addressed in the Audit  \nOur principal audit procedures to evaluate management\u2019s estimates of uncertain tax positions related to unresolved transfer \npricing issues included the following:  \n\u2022 We evaluated the appro priateness and consistency of management\u2019s methods and assumptions used in the \nidentification, recognition, measurement, and disclosure of uncertain tax positions, which included testing the \neffectiveness of the related internal controls.  \n\u2022 We read and evaluated management\u2019s documentation, including relevant accounting policies and information obtained \nby management from outside tax specialists, that detailed the basis of the uncertain tax positions."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973e68-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 79, "chroma:document": "79 \u2022 We tested the reasonableness of managem ent\u2019s judgments regarding the future resolution of the uncertain tax \npositions, including an evaluation of the technical merits of the uncertain tax positions.  \n\u2022 For those uncertain tax positions that had not been effectively settled, we evaluated whether  management had \nappropriately considered new information that could significantly change the recognition, measurement or disclosure of \nthe uncertain tax positions.  \n\u2022 We evaluated the reasonableness of management\u2019s estimates by considering how tax law, including statutes, \nregulations and case law, impacted management\u2019s judgments.  \n/S/ DELOITTE  & T OUCHE  LLP  \nSeattle, Washington  \nJuly 27, 2023  \nWe have served as the Compa ny\u2019s auditor since 1983."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973e9a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 80, "chroma:document": "80 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND \nFINANCIAL DISCLOSURE  \nNot applicable.  \nCONTROLS AND PROCEDURES  \nUnder the supervision and with the participation of our management, including the Chief Executive Of ficer and Chief \nFinancial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange \nAct Rule 13a -15(b) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Of ficer \nand Chief Financial Officer have concluded that these disclosure controls and procedures are effective.  \nREPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING  \nOur management is responsible for establishing and maintaining adequate intern al control over financial reporting for the \nCompany. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of \nour financial reporting for external purposes in accordance with accounting principles generally accepted in the United \nStates of America. Internal control over financial reporting includes maintaining records that in reasonable detail accuratel y \nand fairly reflect our transactions; providing reasonable assurance that transactions are record ed as necessary for \npreparation of our consolidated financial statements; providing reasonable assurance that receipts and expenditures of \ncompany assets are made in accordance with management authorization; and providing reasonable assurance that \nunauthor ized acquisition, use, or disposition of company assets that could have a material effect on our consolidated \nfinancial statements would be prevented or detected on a timely basis. Because of its inherent limitations, internal control \nover financial report ing is not intended to provide absolute assurance that a misstatement of our consolidated financial \nstatements would be prevented or detected.  \nManagement conducted an evaluation of the effectiveness of our internal control over financial reporting based o n the \nframework in Internal Control \u2013 Integrated Framework (2013)  issued by the Committee of Sponsoring Organizations of the \nTreadway Commission. Based on this evaluation, management concluded that the Company\u2019s internal control over financial \nreporting wa s effective as of June  30, 2023. There were no changes in our internal control over financial reporting during \nthe quarter ended June  30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal \ncontrol over financial  reporting. Deloitte  & Touche LLP has audited our internal control over financial reporting as of June  30,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973ecc-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 80, "chroma:document": "2023; their report follows."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973efe-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 81, "chroma:document": "81 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  \nTo the Stockholders and the Board of Directors of Microsoft Corporation  \nOpinion on Internal Control over Financial Reporting  \nWe have audited the internal control over financial reporting of Microsoft Corporation and subsidiaries (the \u201cCompany\u201d) as \nof Jun e 30, 2023, based on criteria established in Internal Control \u2014 Integrated Framework (2013)  issued by the Committee \nof Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material \nrespects, effective i nternal control over financial reporting as of June  30, 2023, based on criteria established in Internal \nControl \u2014 Integrated Framework (2013)  issued by COSO.  \nWe have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) \n(PCAOB), the consolidated financial statements as of and for the year ended June  30, 2023, of the Company and our report \ndated July  27, 2023, expressed an unqualified opinion on those financial statements.  \nBasis for Opinion  \nThe Company\u2019s management is responsible for maintaining effective internal control over financial reporting and for its \nassessment of the effectiveness of internal co ntrol over financial reporting, included in the accompanying Report of \nManagement on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company\u2019s \ninternal control over financial reporting based on our audit. We ar e a public accounting firm registered with the PCAOB and \nare required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the \napplicable rules and regulations of the Securities and Exchange Commission and t he PCAOB.  \nWe conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform \nthe audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in \nall material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing \nthe risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control \nbased on  the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We \nbelieve that our audit provides a reasonable basis for our opinion."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973f26-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 81, "chroma:document": "believe that our audit provides a reasonable basis for our opinion.  \nDefinition and Limitations of Internal Control over Financial Reporting  \nA com pany\u2019s internal control over financial reporting is a process designed to provide reasonable assurance regarding the \nreliability of financial reporting and the preparation of financial statements for external purposes in accordance with gener ally \naccepted accounting principles. A company\u2019s internal control over financial reporting includes those policies and procedures \nthat (1)  pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and \ndispositions o f the assets of the company; (2)  provide reasonable assurance that transactions are recorded as necessary \nto permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts \nand expenditures of the c ompany are being made only in accordance with authorizations of management and directors of \nthe company; and (3)  provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, \nuse, or disposition of the company\u2019s assets that could have a material effect on the financial statements.  \nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,  \nprojections of any evaluation of effectiveness to future periods a re subject to the risk that controls may become inadequate \nbecause of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.  \n  \n/S/ DELOITTE  & TOUCHE  LLP   \n    \nSeattle, Washington    \nJuly 27, 2023"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5973f58-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 82, "chroma:document": "82 DIRECTORS AND EXECUTIVE OFFICERS OF MICROSOFT CORPORATION  \n  \nDIRECTORS  \n  \nSatya Nadella  \nChairman and Chief Executive Officer,  \nMicrosoft Corporation   Sandra E. Peterson 2,3 \nLead Independent Director,  \nMicrosoft Corporation  John W. Stanton 1,4 \nFounder and Chairman, Trilogy \nPartnerships  \n      \nReid G. Hoffman 4 \nPartner, Greylock Partners  Penny S. Pritzker 4 \nFounder and Chairman, PSP Partners, \nLLC John W. Thompson 3,4 \nPartner, Lightspeed Venture Partners  \n      \nHugh F. Johnston 1 \nVice Chairman and Executive  Vice \nPresident and Chief Financial Officer, \nPepsiCo, Inc.  Carlos A. Rodriguez 1,2 \nExecutive Chair, ADP, Inc.  Emma N. Walmsley 2,4 \nChief Executive Officer, GSK plc  \n      \nTeri L. List 1,3 \nFormer Executive Vice President and \nChief Financial Officer, The Ga p, Inc.  Charles W. Scharf 2,3 \nChief Executive Officer and President, \nWells Fargo  & Company  Padmasree Warrior 2 \nFounder, President and Chief Executive \nOfficer, Fable Group, Inc.  \nBoard Committees  \n1. Audit Committee  \n2. Compensation Committee  \n3. Governance and Nominating Committee  \n4. Environmental, Social, and Public Policy Committee  \nEXECUTIVE OFFICERS  \n  \nSatya  Nadella  \nChairman and Chief Executive Officer  Amy E. Hood  \nExecutive Vice President and Chief Financial \nOfficer  \n    \nJudson B. Althoff  \nExecutive Vice President and Chief Commercial Officer  Bradford L. Smith  \nVice Chair and President  \n    \nChristopher C. Capossela  \nExecutive Vice President and Chief Marketing Officer  Christopher D. Young  \nExecutive Vice President, Business Development, \nStrategy, and Ventures  \n    \nKathleen T. Hogan  \nExecutive Vice President and Chief Human Resources Officer"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974070-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 83, "chroma:document": "83 INVESTOR RELATIONS  \n Investor Relations  \nYou can contact Microsoft Investor Relations by calling \ntoll-free at (800) 285 -7772 or outside the United States, \ncall (425) 706 -4400. We can be contacted between the \nhours of 9:00 a.m. to 5:00 p.m. Pacific Time to answer \ninvestment -oriented questions abou t Microsoft.  \nFor access to additional financial information, visit the \nInvestor Relations website online at:  \nwww.microsoft.com/investor  \nOur e -mail is msft@microsoft.com  \nOur mailing address is:  \nInvestor Relations  \nMicrosoft Corporation  \nOne Microsoft Way  \nRedmond, Washington 98052 -6399  \nAttending the Annual Meeting  \nThe 2023 Annual Shareholders Meeting will be held \nas a virtual -only meeting . Any shareholder can join the \nAnnual Meeting, while shareholders of record as of \nSeptember  29 2023, will be able to vote and submit \nquestions during the meeting.  \nDate: Thursday, December  7, 2023  \nTime: 8:30 a.m. Pacific Time  \nVirtual Shareholder Meeting:   \nwww.virtualshareholdermeeting.com/MSFT23  \nSubmit Your Question  \nWe invite you to submit any questions via the proxy voting \nsite at www.proxyvote.com . We will include as many of \nyour questions as possible during the Q&A session of the \nmeeting and will pro vide answers to questions on the \nMicrosoft Investor Relations website under the Annual \nMeeting page.  \nRegistered Shareholder Services  \nComputershare, our transfer agent, can help you with a \nvariety of shareholder related services including:  \n\u2022 Change of ad dress  \n\u2022 Lost stock certificates  \n\u2022 Transfer of stock to another person  \n\u2022 Additional administrative services  \n  \nComputershare also administers a direct stock purchase \nplan and a dividend reinvestment program for the \ncompany.  Contact Computershare directly to find out more about \nthese services and programs at 800 -285-7772, option 1, \nor visit online at:  \nhttps://www.computershare.com/Microsoft   \nYou can e -mail the transfer agent at:  \nweb.queries@computershare.com"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597411a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/msft-10-k-2023.pdf", "page": 83, "chroma:document": "web.queries@computershare.com  \nYou can also se nd mail to the transfer agent at:  \nComputershare  \nP.O. Box 505000  \nLouisville, KY 40233 -5000  \nShareholders can sign up for electronic alerts to access \nthe annual report and proxy statement online. The service \ngets you the information you need faster and al so gives \nyou the power and convenience of online proxy voting. To \nsign up for this free service, visit the Annual Report site \non the Investor Relations website at: \nhttp://www.microsoft.com/investor/AnnualReports/default\n.aspx   \nEnvironmental, Social, and Gov ernance (ESG)/Corporate \nSocial Responsibility  \nMany of our shareholders are focused on environmental, \nsocial, and governance topics. To meet the expectations \nof our stakeholders and to and maintain their trust, we are \ncommitted to conducting our business i n ways that are \nprincipled, transparent, and accountable. Microsoft has \nmade a broad range of environmental and social \ncommitments to make a significant positive impact on \nimportant global issues. Microsoft\u2019s Board of Directors \nprovides insight, feedback, and oversight across a broad \nrange of environmental and social matters. In particular, \namong the responsibilities of the Board\u2019s Environmental, \nSocial, and Public Policy Committee is to review and \nprovide guidance to the Board and management about \nthe Comp any\u2019s policies and programs that relate to \ncorporate social responsibility.  \nFor more about Microsoft\u2019s CSR commitments and \nperformance, please visit:  \nwww.microsoft.com/transparency ."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597417e-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 0, "chroma:document": "UNITED ST ATES\nSECURITIES AND EXCHANGE COMMISSION\nWashington, D.C. 20549\n__________________________\nFORM 10-K\n__________________________\n(Mark One)\n\u2612    ANNUAL  REPOR T PURSUANT  TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE ACT  OF 1934\nFor the fiscal year  ended December  31, 2023\nor\n\u2610    TRANSITION REPOR T PURSUANT  TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE ACT  OF 1934\nFor the transition period fr om            to            \nCommission File Number: 001-35551\n__________________________\nMeta Platforms, Inc.\n(Exact name of r egistrant as specified in its charter)\n__________________________\nDelawar e 20-1665019\n(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)\n1 Meta Way, Menlo Park, California 94025\n(Address of principal executive offices and Zip Code)\n(650) 543-4800\n(Registrant's telephone number, including area code)\n__________________________\nSecurities r egister ed pursuant to Section 12(b) of the Act:\nTitle of each class Trading symbol(s) Name of each exchange on which registered\nClass A Common Stock, $0.000006 par value MET A The Nasdaq Stock Market LLC\nSecurities r egister ed pursuant to Section 12(g) of the Act: None\nIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  \u2612   No   \u2610\nIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  \u2610  No  \u2612\nIndicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (Exchange Act) during the preceding\n12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  \u2612     No  \u2610"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59741e2-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 0, "chroma:document": "Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (\u00a7 232.405 of this chapter)\nduring the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  \u2612     No  \u2610\nIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions\nof \"large accelerated filer,\" \"accelerated filer,\" \"smaller reporting company,\" and \"emerging growth company\" in Rule 12b-2 of the Exchange Act.\nLarge accelerated filer \u2612 Accelerated filer \u2610\nNon-accelerated filer \u2610 Smaller reporting company \u2610\nEmerging growth company \u2610\nIf 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\nprovided pursuant to Section 13(a) of the Exchange Act. \u2610\nIndicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section\n404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. \u2612\nIf securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to\npreviously issued financial statements. \u2610\nIndicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant\u2019s executive officers\nduring the relevant recovery period pursuant to \u00a7240.10D-1(b). \u2610\nIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  \u2610     No   \u2612\nThe aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant as of June 30, 2023, the last business day of the registrant's most recently completed second fiscal"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974250-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 0, "chroma:document": "quarter, was $637 billion based upon the closing price reported for such date on the Nasdaq Global Select Market. On January 26, 2024, the registrant had 2,200,048,907 shares of Class A common\nstock and 349,356,199 shares of Class B common stock outstanding."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59742b4-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 1, "chroma:document": "DOCUMENTS INCORPORATED BY REFERENCE\nPortions of the registrant's Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated\nherein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2023."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597432c-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 2, "chroma:document": "Meta Platforms, Inc.\nForm 10-K\nTABLE OF CONTENTS\nPage\nNote About Forward-Looking Statements 3\nLimitations of Key Metrics and Other Data 4\nPART I\nItem 1. Business 7\nItem 1A. Risk Factors 15\nItem 1B. Unresolved Staff Comments 51\nItem 1C. Cybersecurity 51\nItem 2. Properties 52\nItem 3. Legal Proceedings 52\nItem 4. Mine Safety Disclosures 56\nPART II\nItem 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 57\nItem 6. [Reserved] 58\nItem 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 59\nItem 7A. Quantitative and Qualitative Disclosures About Market Risk 82\nItem 8. Financial Statements and Supplementary Data 84\nItem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 126\nItem 9A. Controls and Procedures 126\nItem 9B. Other Information 126\nItem 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 126\nPART III\nItem 10. Directors, Executive Officers and Corporate Governance 127\nItem 11. Executive Compensation 127\nItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 127\nItem 13. Certain Relationships and Related Transactions, and Director Independence 127\nItem 14. Principal Accountant Fees and Services 127\nPART IV\nItem 15. Exhibit and Financial Statement Schedules 128\nItem 16. Form 10-K Summary 130\nSignatures 131\n2"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974502-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 3, "chroma:document": "Table of Contents\nNOTE ABOUT FORWARD-LOOKING STATEMENTS\nThis Annual Report on Form 10-K contains forward-looking statements. All statements contained in this Annual Report on Form 10-K other than\nstatements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our\nobjectives for future operations, are forward-looking statements. The words \"believe,\" \"may,\" \"will,\" \"estimate,\" \"continue,\" \"anticipate,\" \"intend,\" \"expect,\"\nand similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current\nexpectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-\nterm and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties\nand assumptions, including those described in Part I, Item 1A, \"Risk Factors\" in this Annual Report on Form 10-K. Moreover, we operate in a very competitive\nand rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact\nof all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in\nany forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Annual\nReport on Form 10-K may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking\nstatements.\nWe undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given\nthese risks and uncertainties, readers are cautioned not to place undue reliance on such forward\u2011looking statements.\nUnless expressly indicated or the context requires otherwise, the terms \"Meta,\" \"company,\" \"we,\" \"us,\" and \"our\" in this document refer to Meta\nPlatforms, Inc., a Delaware corporation, and, where appropriate, its subsidiaries. The term \"Family\" refers to our Facebook, Instagram, Messenger, and\nWhatsApp products. For references to accessing Meta's products on the \"web\" or via a \"website,\" such terms refer to accessing such products on personal"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a597457a-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 3, "chroma:document": "computers. For references to accessing Meta's products on \"mobile,\" such term refers to accessing such products via a mobile application or via a mobile-\noptimized version of our websites such as m.facebook.com, whether on a mobile phone or tablet.\n3"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59745de-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 4, "chroma:document": "Table of Contents\nLIMITATIONS OF KEY METRICS AND OTHER DATA\nThe numbers for our key metrics are calculated using internal company data based on the activity of user accounts. We report our estimates of the\nnumbers of our daily active people (DAP), monthly active people (MAP), and average revenue per person (ARPP) (collectively, our \"Family metrics\") based\non the activity of users who visited at least one of Facebook, Instagram, Messenger, and WhatsApp (collectively, our \"Family\" of products) during the\napplicable period of measurement. We have historically reported the numbers of our daily active users (DAUs), monthly active users (MAUs), and average\nrevenue per user (ARPU) (collectively, our \"Facebook metrics\") based on user activity only on Facebook and Messenger and not on our other products. We\nbelieve our Family metrics better reflect the size of our community and the fact that many people are using more than one of our products. Beginning with our\nQuarterly Report on Form 10-Q to be filed for the first quarter of 2024, we will no longer report DAUs, MAUs, ARPU, and MAP in our periodic reports filed\nwith the Securities and Exchange Commission, but will continue reporting DAP and ARPP (calculated based on DAP).\nWhile these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are\ninherent challenges in measuring usage of our products across large online and mobile populations around the world. The methodologies used to measure these\nmetrics require significant judgment and are also susceptible to algorithm or other technical errors. In addition, we are continually seeking to improve our\nestimates of our user base, and such estimates may change due to improvements or changes in our methodology. We regularly review our processes for\ncalculating these metrics, and from time to time we discover inaccuracies in our metrics or make adjustments to improve their accuracy, which can result in\nadjustments to our historical metrics. Our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to\napply different methodologies for such adjustments. We generally do not intend to update previously disclosed Family metrics for any such inaccuracies or\nadjustments that are within the error margins disclosed below.\nIn addition, our Family metrics and Facebook metrics estimates will differ from estimates published by third parties due to differences in methodology"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974656-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 4, "chroma:document": "or other factors such as data limitations or other challenges in measuring large online and mobile populations. For example, our Family metrics estimates in\nsome instances exceed estimates of addressable online and mobile populations that are based on data published by third parties.\nFamily Metrics\nMany people in our community have user accounts on more than one of our products, and some people have multiple user accounts within an individual\nproduct. Accordingly, for our Family metrics, we do not seek to count the total number of user accounts across our products because we believe that would not\nreflect the actual size of our community. Rather, our Family metrics represent our estimates of the number of unique people using at least one of Facebook,\nInstagram, Messenger, and WhatsApp. We do not require people to use a common identifier or link their accounts to use multiple products in our Family, and\ntherefore must seek to attribute multiple user accounts within and across products to individual people. To calculate these metrics, we rely upon complex\ntechniques, algorithms and machine learning models that seek to count the individual people behind user accounts, including by matching multiple user\naccounts within an individual product and across multiple products when we believe they are attributable to a single person, and counting such group of\naccounts as one person. These techniques and models require significant judgment, are subject to data and other limitations discussed below, and inherently are\nsubject to statistical variances and uncertainties. We estimate the potential error in our Family metrics primarily based on user survey data, which itself is\nsubject to error as well. While we expect the error margin for our Family metrics to vary from period to period, we estimate that such margin generally will be\napproximately 3% of our worldwide MAP. At our scale, it is very difficult to attribute multiple user accounts within and across products to individual people,\nand it is possible that the actual numbers of unique people using our products may vary significantly from our estimates, potentially beyond our estimated error\nmargins. As a result, it is also possible that our Family metrics may indicate changes or trends in user numbers that do not match actual changes or trends.\nTo calculate our estimates of Family DAP and MAP, we currently use a series of machine learning models that are developed based on internal reviews\nof limited samples of user accounts and calibrated against user survey data. We apply significant judgment in designing these models and calculating these\nestimates. For example, to match user accounts within individual products and across multiple products, we use data signals such as similar device information,"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974732-8e1f-11ef-b504-acde48001122
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 4, "chroma:document": "IP addresses, and user names. We also calibrate our models against data from periodic user surveys of varying sizes and frequency across our products, which\nare inherently subject to error. The timing and results of such user surveys have in the past contributed, and may in the future contribute, to changes in our\nreported Family metrics from period to period. In addition, our data limitations may affect our understanding of certain details of our business and increase the\nrisk of error for our Family metrics estimates.\n4"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 5, "chroma:document": "Table of Contents\nOur techniques and models rely on a variety of data signals from different products, and we rely on more limited data signals for some products compared to\nothers. For example, as a result of limited visibility into encrypted products, we have fewer data signals from WhatsApp user accounts and primarily rely on\nphone numbers and device information to match WhatsApp user accounts with accounts on our other products. Any loss of access to data signals we use in our\nprocess for calculating Family metrics, whether as a result of our own product decisions, actions by third-party browser or mobile platforms, regulatory or\nlegislative requirements, or other factors, also may impact the stability or accuracy of our reported Family metrics, as well as our ability to report these metrics\nat all. Our estimates of Family metrics also may change as our methodologies evolve, including through the application of new data signals or technologies,\nproduct changes, or other improvements in our user surveys, algorithms, or machine learning that may improve our ability to match accounts within and across\nour products or otherwise evaluate the broad population of our users. In addition, such evolution may allow us to identify previously undetected violating\naccounts (as defined below).\nWe regularly evaluate our Family metrics to estimate the percentage of our MAP consisting solely of \"violating\" accounts. We define \"violating\"\naccounts as accounts which we believe are intended to be used for purposes that violate our terms of service, including bots and spam. In the fourth quarter of\n2023, we estimated that approximately 3% of our worldwide MAP consisted solely of violating accounts. Such estimation is based on an internal review of a\nlimited sample of accounts, and we apply significant judgment in making this determination. For example, we look for account information and behaviors\nassociated with Facebook and Instagram accounts that appear to be inauthentic to the reviewers, but we have limited visibility into WhatsApp user activity due\nto encryption. In addition, if we believe an individual person has one or more violating accounts, we do not include such person in our violating accounts\nestimation as long as we believe they have one account that does not constitute a violating account. From time to time, we disable certain user accounts, make\nproduct changes, or take other actions to reduce the number of violating accounts among our users, which may also reduce our DAP and MAP estimates in a\nparticular period. Violating accounts are very difficult to measure at our scale, and it is possible that the actual number of violating accounts may vary"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59747fa-8e1f-11ef-b504-acde48001122
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 5, "chroma:document": "significantly from our estimates.\nThe numbers of Family DAP and MAP discussed in this Annual Report on Form 10-K, as well as ARPP, do not include users on our other products,\nunless they would otherwise qualify as DAP or MAP, respectively, based on their other activities on our Family products.\nFacebook Metrics\nWe regularly evaluate our Facebook metrics to estimate the number of \"duplicate\" and \"false\" accounts among our MAUs. A duplicate account is one\nthat a user maintains in addition to his or her principal account. We divide \"false\" accounts into two categories: (1) user-misclassified accounts, where users\nhave created personal profiles for a business, organization, or non-human entity such as a pet (such entities are permitted on Facebook using a Page rather than\na personal profile under our terms of service); and (2) violating accounts, which represent user profiles that we believe are intended to be used for purposes that\nviolate our terms of service, such as bots and spam. The estimates of duplicate and false accounts are based on an internal review of a limited sample of\naccounts, and we apply significant judgment in making this determination. For example, to identify duplicate accounts we use data signals such as identical IP\naddresses and similar user names, and to identify false accounts we look for names that appear to be fake or other behavior that appears inauthentic to the\nreviewers. Any loss of access to data signals we use in this process, whether as a result of our own product decisions, actions by third-party browser or mobile\nplatforms, regulatory or legislative requirements, or other factors, also may impact the stability or accuracy of our estimates of duplicate and false accounts.\nOur estimates also may change as our methodologies evolve, including through the application of new data signals or technologies or product changes that may\nallow us to identify previously undetected duplicate or false accounts and may improve our ability to evaluate a broader population of our users. Duplicate and\nfalse accounts are very difficult to measure at our scale, and it is possible that the actual number of duplicate and false accounts may vary significantly from our\nestimates.\nIn the fourth quarter of 2023, we estimated that duplicate accounts may have represented approximately 10% of our worldwide MAUs. We believe the\npercentage of duplicate accounts is meaningfully higher in developing markets such as the Philippines and Vietnam, as compared to more developed markets."}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 5, "chroma:document": "In the fourth quarter of 2023, we estimated that false accounts may have represented approximately 4% of our worldwide MAUs. Our estimation of false\naccounts can vary as a result of episodic spikes in the creation of such accounts, which we have seen originate more frequently in specific countries such as\nIndonesia, Vietnam, and Nigeria. From time to time, we disable certain user accounts, make product changes, or take other actions to reduce the number of\nduplicate or false accounts among our users, which may also reduce our DAU and MAU estimates in a particular period.\n5"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 6, "chroma:document": "Table of Contents\nThe numbers of DAUs and MAUs discussed in this Annual Report on Form 10-K, as well as ARPU, do not include users on Instagram, WhatsApp, or\nour other products, unless they would otherwise qualify as DAUs or MAUs, respectively, based on their other activities on Facebook.\nUser Geography\nOur data regarding the geographic location of our users is estimated based on a number of factors, such as the user's IP address and self-disclosed\nlocation. These factors may not always accurately reflect the user's actual location. For example, a user may appear to be accessing Facebook from the location\nof the proxy server that the user connects to rather than from the user's actual location. The methodologies used to measure our metrics are also susceptible to\nalgorithm or other technical errors, and our estimates for revenue by user location and revenue by user device are also affected by these factors.\n6"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 7, "chroma:document": "Table of Contents\nPART I\nItem 1.Business\nOverview\nOur mission is to give people the power to build community and bring the world closer together.\nAll of our products, including our apps, share the vision of helping to bring the metaverse to life. We build technology that helps people connect and\nshare, find communities, and grow businesses. Our products enable people to connect and share with friends and family through mobile devices, personal\ncomputers, virtual reality (VR) and mixed reality (MR) headsets, and wearables. We also help people discover and learn about what is going on in the world\naround them, enable people to share their experiences, ideas, photos and videos, and other activities with audiences ranging from their closest family members\nand friends to the public at large, and stay connected everywhere by accessing our products. Meta is moving our offerings beyond 2D screens toward\nimmersive experiences like augmented and virtual reality to help build the metaverse, which we believe is the next evolution in social technology. Our vision\nfor the metaverse does not center on any single product, but rather an entire ecosystem of experiences, devices, and new technologies. While the metaverse is in\nthe very early stages of its development, we believe it will become the next computing platform and the future of social interaction. Across our work, we are\ninnovating in artificial intelligence (AI) technologies to build new experiences that help make our platform more social, useful, and immersive.\nWe report financial results for two segments: Family of Apps (FoA) and Reality Labs (RL). Currently, we generate substantially all of our revenue from\nselling advertising placements on our family of apps to marketers, which is reflected in FoA. Ads on our platform enable marketers to reach people across a\nrange of marketing objectives, such as generating leads or driving awareness. Marketers purchase ads that can appear in multiple places including on Facebook,\nInstagram, Messenger, and third-party applications and websites. RL generates revenue from sales of consumer hardware products, software, and content.\nWe invest in our business based on our company priorities. In 2024, we intend to focus on six key investment areas: AI, the metaverse, our discovery\nengine, monetization of our products and services, regulatory readiness, and enhancing developer efficiency to build, iterate, and optimize products quickly.\nOur AI investments support initiatives across our products and services, helping power the systems that rank content in our apps, our discovery engine that"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 7, "chroma:document": "recommends relevant content, the tools advertisers use to reach customers, the development of new generative AI experiences, and the tools that make our\nproduct development more efficient and productive.\nThe majority of our investments are directed toward developing our family of apps. In 2023, 80% of our total costs and expenses were recognized in\nFoA and 20% were recognized in RL. Our FoA investments were $70.13 billion in 2023 and include expenses relating to headcount, data centers and technical\ninfrastructure as part of our efforts to develop our apps and our advertising services. We are also making significant investments in our metaverse efforts,\nincluding developing virtual and augmented reality devices, software for social platforms, neural interfaces, and other foundational technologies. Our total RL\ninvestments were $18.02 billion in 2023 and include expenses relating to headcount and technology development across these efforts. These are fundamentally\nnew technologies that we expect will evolve as the metaverse ecosystem develops, and many products for the metaverse may only be fully realized in the next\ndecade. Although it is inherently difficult to predict when and how the metaverse ecosystem will develop, we expect our RL segment to continue to operate at a\nloss for the foreseeable future, and our ability to support our metaverse efforts is dependent on generating sufficient profits from other areas of our business. We\nexpect this will be a complex, evolving, and long-term initiative. We are investing now because we believe this is the next chapter of the internet and will\nunlock monetization opportunities for businesses, developers, and creators, including around advertising, hardware, and digital goods.\nFamily of Apps Products\n\u2022 Facebook. Facebook helps give people the power to build community and bring the world closer together. It's a place for people to share life's\nmoments and discuss what's happening, nurture and build relationships, discover and connect to interests, and create economic opportunity. They\ncan do this through Feed, Reels, Stories, Groups, Marketplace, and more.\n7"}


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topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974980-8e1f-11ef-b504-acde48001122
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 8, "chroma:document": "Table of Contents\n\u2022 Instagram. Instagram brings people closer to the people and things they love. Instagram Feed, Stories, Reels, Live, and messaging are places\nwhere people and creators can connect and express themselves through photos, video, and private messaging, and discover and shop from their\nfavorite businesses.\n\u2022 Messenger. Messenger is a simple yet powerful messaging application for people to connect with friends, family, communities, and businesses\nacross platforms and devices through text, audio, and video calls.\n\u2022 Threads. Threads is an application for text-based updates and public conversations, where communities come together to discuss topics of interest.\nPeople can connect directly with their favorite creators and others who love the same things or build a loyal following of their own to share their\nideas, opinions, and creativity with the world.\n\u2022 WhatsApp. WhatsApp is a simple, reliable, and secure messaging application that is used by people and businesses around the world to\ncommunicate and transact in a private way. Within WhatsApp we launched WhatsApp Channels, a one-to-many broadcast service designed to help\npeople follow information from people and organizations that are important to them.\nReality Labs Products\nMany of our metaverse investments are directed toward long-term, cutting-edge research and development for products that are not on the market today\nand may only be fully realized in the next decade. This includes exploring new technologies such as neural interfaces using electromyography, which lets\npeople control their devices using neuromuscular signals, as well as innovations in AI and hardware to help build next-generation interfaces. In the near term,\nwe are continuing to develop early metaverse experiences through Reality Labs products that help people feel connected, anytime, anywhere.\nOur current product offerings in VR include our Meta Quest devices, as well as software and content available through the Meta Quest Store, which\nenable a range of social experiences that allow people to defy physical distance while engaging in gaming, fitness, entertainment, and more. For example, Meta\nHorizon Worlds is a social platform where people can interact with friends, meet new people, play games, and attend virtual events.\nTo drive greater adoption and acceptance of VR we have also introduced MR capabilities, which allow users to experience the immersion and presence\nof VR while still being grounded in the physical world, through our Meta Quest Pro and Meta Quest 3 devices.\nWe have continued to advance our augmented reality (AR) roadmap to include offerings such as the Ray-Ban Meta smart glasses, which feature Meta"}


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topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59749b2-8e1f-11ef-b504-acde48001122
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 8, "chroma:document": "AI, our advanced conversational assistant, as well as offer the ability to livestream video and let people stay more present through hands-free interaction. We\nalso offer Meta Spark, a platform that allows creators and businesses to build AR experiences that bring the digital and physical worlds together in our apps.\nIn general, while all of these investments are part of our long-term initiative to help build the metaverse, our VR and social platform efforts also include\nnotable shorter-term projects developing specific products and services to go to market, whereas our AR efforts are primarily directed toward longer-term\nresearch and development projects. For example, in 2024, we expect to spend approximately 50% of our Reality Labs operating expenses on our AR initiatives,\napproximately 40% on our VR (including MR) initiatives, and approximately 10% on social platforms and other initiatives. We apply significant judgment in\nestimating this expense breakdown as there are certain shared costs across product lines, and our expectations are subject to change, including as the metaverse\necosystem and our business strategies evolve. In particular, we regularly evaluate our product roadmaps and make significant changes as our understanding of\nthe technological challenges and market landscape and our product ideas and designs evolve.\nCompetition\nOur business is characterized by innovation, rapid change, and disruptive technologies. We compete with companies providing connection, sharing,\ndiscovery, and communication products and services to users online, as well as companies that sell advertising to businesses looking to reach consumers and/or\ndevelop tools and systems for managing and optimizing advertising campaigns. We face significant competition in every aspect of our business, including, but\nnot limited to, companies that facilitate the ability of users to create, share, communicate, and discover content and information online or\n8"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a59749e4-8e1f-11ef-b504-acde48001122
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 9, "chroma:document": "Table of Contents\nenable marketers to reach their existing or prospective audiences. We compete to attract, engage, and retain people who use our products, to attract and retain\nbusinesses that use our free or paid business and advertising services, and to attract and retain developers who build compelling applications that integrate with\nour products. We also compete with companies that develop and deliver consumer hardware and virtual and augmented reality products and services. We also\nexpect to face additional competition as we introduce or acquire new products, as our existing products evolve, or as other companies introduce new products\nand services, including as part of efforts to develop the metaverse or innovate through the development and application of new technologies such as AI.\nTechnology\nOur product development philosophy centers on continuous innovation in creating and improving products that are social by design, which means that\nour products are designed to place people and their social interactions at the core of the product experience. As our user base grows, as engagement with\nproducts like video, VR, and MR increases, and as we deepen our investment in new technologies, our computing needs continue to expand. We have designed\nand built our own data centers and key portions of our technical infrastructure, and a substantial portion of our technical infrastructure is also provided by third\nparties. Our ability to provide and continue to innovate our products and services depends on the continued availability of components, power, and network\ncapacity.\nWe make significant investments in technology both to improve our existing products and services and to develop new ones, as well as for our marketers\nand developers. We are also investing in protecting the security, privacy, and integrity of our platform by investing in both people and technology to strengthen\nour systems against abuse. Across all of these efforts, we are making significant investments in AI initiatives, including generative AI, to, among other things,\nrecommend relevant content across our products through our AI-powered discovery engine, enhance our advertising tools and improve our ad delivery,\ntargeting, and measurement capabilities, and to develop new products as well as new features for existing products.\nSales and Operations\nThe majority of our marketers use our self-service ad platform to launch and manage their advertising campaigns. We also have a global sales force that\nis focused on attracting and retaining advertisers and providing support to them throughout the stages of the marketing cycle from pre-purchase decision-\nmaking to real-time optimizations to post-campaign analytics. We work directly with these advertisers, as well as through advertising agencies and resellers."}


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topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974a16-8e1f-11ef-b504-acde48001122
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 9, "chroma:document": "We operate offices in approximately 90 cities around the globe, the majority of which have a sales presence. We also invest in and rely on self-service tools to\nprovide direct customer support to our users and partners.\nFor our RL products, our sales and operations efforts utilize third-party sales channels such as retailers, resellers, and our direct-to-consumer channel,\nMeta.com. These efforts are focused on driving consumer and enterprise sales and adoption of our Meta Quest portfolio of products and Ray-Ban Meta smart\nglasses.\nMarketing\nHistorically, our communities have generally grown organically with people inviting their friends to connect with them, supported by internal efforts to\nstimulate awareness and interest. In addition, we have invested and will continue to invest in marketing our products and services to grow our brand and help\nbuild community around the world.\nIntellectual Property\nTo establish and protect our proprietary rights, we rely on a combination of patents, trademarks, copyrights, trade secrets, including know-how, license\nagreements, confidentiality procedures, non-disclosure agreements with third parties, employee disclosure and invention assignment agreements, and other\ncontractual rights. In addition, to further protect our proprietary rights, from time to time we have purchased patents and patent applications from third parties.\nWe do not believe that our proprietary technology is dependent on any single patent or copyright or groups of related patents or copyrights. We believe the\nduration of our patents is adequate relative to the expected lives of our products.\n9"}


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topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 10, "chroma:document": "Table of Contents\nGovernment Regulation\nWe are subject to a variety of laws and regulations in the United States and abroad that involve matters central to our business, many of which are still\nevolving and being tested in courts, and could be interpreted in ways that could harm our business. These laws and regulations involve matters including\nprivacy, data use, data protection and personal information, the provision of our services to younger users, biometrics, encryption, rights of publicity, content,\nintegrity, intellectual property, advertising, marketing, distribution, data security, data retention and deletion, data localization and storage, data disclosure, AI\nand machine learning, electronic contracts and other communications, competition, protection of minors, consumer protection, civil rights, accessibility,\ntelecommunications, product liability, e-commerce, taxation, economic or other trade controls including sanctions, anti-corruption and political law\ncompliance, securities law compliance, and online payment services. Foreign data protection, privacy, content, competition, consumer protection, and other\nlaws and regulations can impose different obligations or be more restrictive than those in the United States, and create the potential for significant fines to be\nimposed.\nThese U.S. federal and state, EU, and other international laws and regulations, which in some cases can be enforced by private parties in addition to\ngovernment entities, are constantly evolving and can be subject to significant change. As a result, the application, interpretation, and enforcement of these laws\nand regulations are often uncertain, particularly in the new and rapidly evolving industry in which we operate, and may be interpreted and applied\ninconsistently from jurisdiction to jurisdiction and inconsistently with our current policies and practices. For example, regulatory or legislative actions or\nlitigation concerning the manner in which we display content to our users, moderate content, provide our services to younger users, or are able to use data in\nvarious ways, including for advertising, or otherwise relating to content that is made available on our products, could adversely affect our financial results,\nincluding by imposing significant fines that increasingly may be calculated based on global revenue. In the United States, in 2023, the U.S. Supreme Court\nheard oral argument in a matter in which the scope of the protections available to online platforms under Section 230 of the Communications Decency Act\n(Section 230) was at issue, but it ultimately declined to address Section 230 in its decision. In addition, there have been, and continue to be, various efforts to"}


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topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974a70-8e1f-11ef-b504-acde48001122
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 10, "chroma:document": "remove or restrict the scope of the protections available to online platforms under Section 230, and any such changes may increase our costs or require\nsignificant changes to our products, business practices, or operations, which could adversely affect our business and financial results.\nWe are also subject to evolving laws and regulations that dictate whether, how, and under what circumstances we can transfer, process or receive certain\ndata that is critical to our operations, including data shared between countries or regions in which we operate and data shared among our products and services.\nIf we are unable to transfer data between and among countries and regions in which we operate, or if we are restricted from sharing data among our products\nand services, it could affect our ability to provide our services, the manner in which we provide our services or our ability to target ads, which could adversely\naffect our financial results. For example, the Privacy Shield, a transfer framework we relied upon for data transferred from the European Union to the United\nStates, was invalidated in July 2020 by the Court of Justice of the European Union (CJEU). In addition, the other bases upon which Meta relies to transfer such\ndata, such as Standard Contractual Clauses (SCCs), have been subjected to regulatory and judicial scrutiny. For example, although the CJEU upheld the\nvalidity of SCCs as a basis to transfer user data from the European Union to the United States in July 2020, on May 12, 2023, the Irish Data Protection\nCommittee (IDPC) issued a Final Decision concluding that Meta Platforms Ireland's reliance on SCCs in respect of certain transfers of European Economic\nArea (EEA) Facebook user data was not in compliance with the European General Data Protection Regulation (GDPR). The IDPC issued an administrative fine\nof EUR \u20ac1.2 billion as well as corrective orders requiring Meta Platforms Ireland to suspend the relevant transfers and to bring its processing operations into\ncompliance with Chapter V GDPR by ceasing the unlawful processing, including storage, of such data in the United States. We are appealing this decision and\nthe corrective orders are currently subject to an interim stay from the Irish High Court. Separately, on March 25, 2022, the European Union and United States\nannounced that they had reached an agreement in principle on a new EU-U.S. Data Privacy Framework (EU-U.S. DPF). On October 7, 2022, President Biden"}


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topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974aa2-8e1f-11ef-b504-acde48001122
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{"source": "dataset/Meta-10-k-2023.pdf", "page": 10, "chroma:document": "signed the Executive Order on Enhancing Safeguards for United States Signals Intelligence Activities (E.O.), and on June 30, 2023, the European Union and\nthe three additional countries making up the EEA were designated by the United States Attorney General as a \"qualifying state\" under Section 3(f) of the E.O.\nOn July 10, 2023, the European Commission adopted an adequacy decision in relation to the United States. The adequacy decision concludes that the United\nStates ensures an adequate level of protection for personal data transferred from the European Union to organizations in the United States that are included in\nthe \"Data Privacy Framework List,\" maintained and made publicly available by the United States Department of Commerce pursuant to the EU-U.S. DPF. The\nimplementation of the EU-U.S. DPF and the adequacy decision are important and welcome milestones, and we are implementing steps to comply with the\nabove corrective orders following engagement with the IDPC. If we are required to take additional steps to comply with the corrective orders, this could\nincrease the cost and complexity of delivering our products and services in Europe. Furthermore, the EU-U.S. DPF replaces\n10"}


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{"source": "dataset/Meta-10-k-2023.pdf", "page": 11, "chroma:document": "Table of Contents\ntwo prior adequacy frameworks which were invalidated by the CJEU. A further invalidation of the EU-U.S. DPF by the CJEU could create considerable\nuncertainty and lead to us being unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe, which\nwould materially and adversely affect our business, financial condition, and results of operations.\nWe have been subject to other significant legislative and regulatory developments, which together with proposed or new legislation and regulations\ncould significantly affect our business in the future. For example, we have implemented a number of product changes and controls as a result of requirements\nunder the GDPR, and may implement additional changes in the future. The GDPR also requires submission of personal data breach notifications to our lead\nEuropean Union privacy regulator, the IDPC, and includes significant penalties for non-compliance with the notification obligation as well as other\nrequirements of the regulation. The interpretation of the GDPR is still evolving, including through decisions of the CJEU, and draft decisions in investigations\nby the IDPC are subject to review by other European privacy regulators as part of the GDPR's consistency mechanism, which may lead to significant changes\nin the final outcome of such investigations. As a result, the interpretation and enforcement of the GDPR, as well as the imposition and amount of penalties for\nnon-compliance, are subject to significant uncertainty, and as it evolves, could potentially have a negative impact on our business and/or our operations. In\naddition, Brazil, the United Kingdom, and other countries have enacted similar data protection regulations imposing data privacy-related requirements on\nproducts and services offered to users in their respective jurisdictions. The California Consumer Privacy Act, as amended by the California Privacy Rights Act,\nand similar laws recently enacted by other states also establish certain transparency rules and create certain data privacy rights for users. Some states have also\nproposed or enacted laws specifically focused on the privacy rights and controls for users under 18 years old and their parents or guardians. Like\ncomprehensive privacy laws, these laws are evolving and subject to interpretation, and may restrict our ability to offer certain products and services provided to\nall or certain cohorts of users in those states, adversely affecting our advertising business. In addition, the European Union's ePrivacy Directive and national\nimplementation laws impose additional limitations on the use of data across messaging products and include significant penalties for non-compliance. Changes"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974b10-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 11, "chroma:document": "to our products or business practices as a result of these or similar developments have adversely affected, and may in the future adversely affect, our advertising\nbusiness. For example, in response to regulatory developments in Europe, we announced plans to change the legal basis for behavioral advertising on Facebook\nand Instagram in the EU, EEA, and Switzerland from \"legitimate interests\" to \"consent,\" and in November 2023 we began offering users in the region a\n\"subscription for no ads\" alternative. We are continuing to engage with regulators on our new consent model, including regarding compliance with\nrequirements under the GDPR, Digital Markets Act (DMA), and EU consumer laws. These or any similar developments in the future may negatively impact\nour user growth and engagement, revenue, and financial results. Similarly, there are a number of legislative proposals or recently enacted laws in the European\nUnion, the United States, at both the federal and state level, as well as other jurisdictions that could impose new obligations or limitations in areas affecting our\nbusiness. For example, the DMA in the European Union imposes new restrictions and requirements on companies like ours, including in areas such as the\ncombination of data across services, mergers and acquisitions, and product design. The DMA also includes significant penalties for non-compliance, and its key\nrequirements will be enforceable against designated gatekeeper companies beginning in March 2024. The DMA has caused, and may in the future cause, us to\nincur significant compliance costs and make changes to our products or business practices. The requirements under the DMA will likely be subject to further\ninterpretation and regulatory engagement. Pending or future proposals to modify competition laws in the United States and other jurisdictions could have\nsimilar effects. We are also subject to content-related legislation such as the Digital Services Act (DSA) in the European Union, which started to apply to our\nbusiness as of August 2023, imposes certain restrictions and requirements for our products and services, and subjects us to increased compliance costs. The\nDSA also includes significant penalties for non-compliance. In addition, some countries, such as India and Turkey, are considering or have passed legislation\nimplementing data protection requirements, new competition requirements, or requiring local storage and processing of data or similar requirements that could\nrequire substantial changes to our products, increase the cost and complexity of delivering our services, cause us to cease the offering of our products and"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974b42-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 11, "chroma:document": "services in certain countries, and/or result in fines or other penalties. New legislation or regulatory decisions that restrict our ability to collect and use\ninformation about minors may also result in limitations on our advertising services or our ability to offer products and services to minors in certain\njurisdictions.\nWe are, and expect to continue to be, the subject of investigations, inquiries, data requests, requests for information, actions, and audits by government\nauthorities and regulators in the United States, Europe, and around the world, particularly in the areas of privacy, data use and data protection, including with\nrespect to processing of sensitive data, data from third parties, data for advertising purposes, data security, minors, safety, law enforcement, consumer\nprotection, civil rights, content moderation, use of our platform for illegal, illicit, or otherwise objectionable activity, competition, AI, and machine learning.\nWe are also currently, and may in the future be, subject to regulatory orders or consent decrees, including the modified consent order we entered into with the\nU.S. Federal Trade Commission (FTC), which took effect in April 2020 and,\n11"}


created_at: 2024-10-19 14:13:57
topic: persistent://default/default/b5b842f2-6136-475f-94fe-426fafdbc529
id: a5974b74-8e1f-11ef-b504-acde48001122
encoding: FLOAT32
metadata:
{"source": "dataset/Meta-10-k-2023.pdf", "page": 12, "chroma:document": "Table of Contents\namong other things, required us to significantly enhance our practices and processes for privacy compliance and oversight. The FTC also continues to monitor\nus and our compliance with the modified consent order and initiated an administrative proceeding against us, which we are challenging, that alleges deficient\ncompliance and violations of the Children's Online Privacy Protection Act (COPPA), the COPPA Rule, and Section 5 of the Federal Trade Commission Act and\nseeks changes to our business. If we are unsuccessful in our challenge to the FTC's action and the agency imposes its proposed order in its current form, we\nwould be subject to significant limitations, including on our ability to launch new and modified products or use data of users under 18 years old. Orders issued\nby, or inquiries or enforcement actions initiated by, government or regulatory authorities could cause us to incur substantial costs, expose us to civil and\ncriminal liability (including liability for our personnel) or penalties (including substantial monetary remedies), interrupt or require us to change our business\npractices in a manner materially adverse to our business (including changes to our products or user data practices), result in negative publicity and reputational\nharm, divert resources and the time and attention of management from our business, or subject us to other structural or behavioral remedies that adversely\naffect our business.\nFor additional information about government regulation applicable to our business, see Part I, Item 1A, \"Risk Factors\" in this Annual Report on Form\n10-K.\nHuman Capital\nAt Meta, everything we do is about helping people feel connected and closer, and we are proud of our unique company culture.\nWe had a global workforce of 67,317 employees as of December 31, 2023, and we have offices in approximately 90 cities around the world. We are\ncommitted to fostering an enriching environment for our workforce and we are focused on supporting our people in doing the best work of their careers. We\noffer competitive compensation and a wide range of benefits, including many learning and development resources, and we work to build a diverse and\ninclusive workplace.\nBeginning in November 2022, we took a number of steps to reduce our expense base. For example, our cost reduction efforts have included scaling back\nbudgets, reducing company perks, shrinking our real estate footprint, and employee layoffs and restructurings. We make it a priority to treat outgoing"}


