MSFT » Topics » Corporate-Level Activity

This excerpt taken from the MSFT 10-K filed Jul 30, 2009.

Corporate-Level Activity

 

(In millions, except percentages)    2009     2008      2007      Percentage
Change 2009
Versus 2008
   Percentage
Change 2008
Versus 2007

Corporate-level activity

   $ (5,877   $ (7,017    $ (4,893    16%    (43)%

Certain corporate-level activity is not allocated to our segments. Those results include expenses such as broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, legal settlements and contingencies, and employee severance.

Fiscal year 2009 compared with fiscal year 2008

Corporate-level expenses decreased during the twelve months ended June 30, 2009, primarily reflecting decreased general and administrative and sales and marketing expenses, partially offset by employee severance charges of $330 million. General and administrative expenses decreased $1.4 billion or 28%, primarily due to decreased costs for legal settlements and contingencies. We incurred $283 million of legal charges during the twelve months ended

 

 

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June 30, 2009 as compared to $1.8 billion during the twelve months ended June 30, 2008. The prior year costs were primarily related to the European Commission fine of $1.4 billion (899 million). Sales and marketing expenses decreased $412 million or 30%, reflecting the resource management program implemented in January 2009.

Fiscal year 2008 compared with fiscal year 2007

Corporate-level expenses increased, reflecting increased costs for legal settlements and legal contingencies and a 13% increase in headcount-related expenses. We incurred $1.8 billion of legal charges during fiscal year 2008 primarily related to the European Commission fine of $1.4 billion (899 million) as compared with $511 million of legal charges during fiscal year 2007. The increase in headcount-related expenses reflects an increase in headcount from the prior year-end.

OPERATING EXPENSES

This excerpt taken from the MSFT 8-K filed Jul 23, 2009.

Corporate-Level Activity

 

     Three Months Ended
June 30,
    Percentage
Change
    Twelve Months Ended
June 30,
    Percentage
Change
 

(In millions, except percentages)

   2009     2008       2009     2008    

Corporate-level activity

   $ (1,483 )    $ (1,643   10   $ (5,877   $ (7,017   16

Certain corporate-level activity is not allocated to our segments. Those results include expenses such as broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, legal settlements and contingencies, and employee severance.

Three months ended June 30, 2009 compared with three months ended June 30, 2008

Corporate-level expenses decreased during the three months ended June 30, 2009, primarily due to a decrease in sales and marketing expenses of $391 million or 75%, reflecting the resource management plan implemented in January 2009, partially offset by increased general and administrative expenses reflecting increased costs for legal settlements and legal contingences. We incurred $193 million of legal charges during the three months ended June 30, 2009.

 

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Twelve months ended June 30, 2009 compared with twelve months ended June 30, 2008

Corporate-level expenses decreased during the twelve months ended June 30, 2009, primarily reflecting decreased general and administrative and sales and marketing expenses, partially offset by employee severance charges of $330 million. General and administrative expenses decreased $1.4 billion or 28%, primarily due to decreased costs for legal settlements and contingencies. We incurred $283 million of legal charges during the twelve months ended June 30, 2009 as compared to $1.8 billion during the twelve months ended June 30, 2008. The prior year costs were primarily related to the European Commission fine of $1.4 billion (899 million). Sales and marketing expenses decreased $412 million or 30%, reflecting the resource management plan implemented in January 2009.

This excerpt taken from the MSFT 10-Q filed Apr 23, 2009.

Corporate-Level Activity

 

      Three Months Ended
March 31,
    Percentage
Change
    Nine Months Ended
March 31,
    Percentage
Change
 

(In millions, except percentages)

       2009             2008           2009     2008    

Corporate-level activity

   $ (1,691 )   $ (2,912 )   42 %   $ (4,394 )   $ (5,374 )   18 %

 

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Certain corporate-level activity is not allocated to our segments. Those results include expenses such as broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, legal settlements and contingencies, and employee severance. Corporate-level expenses decreased during the three and nine months ended March 31, 2009, primarily due to decreased legal costs, partially offset by employee severance charges of $290 million and increased headcount-related expenses. We incurred $57 million of legal charges during the three months and $90 million during the nine months ended March 31, 2009, as compared with $1.5 billion of legal charges during the three months and $1.8 billion during the nine months ended March 31, 2008. The fiscal year 2008 legal costs were primarily related to the European Commission fine of $1.4 billion (899 million).

This excerpt taken from the MSFT 10-Q filed Jan 22, 2009.

Corporate-Level Activity

 

     Three Months Ended
December 31,
    Percentage
Change
    Six Months Ended
December 31,
    Percentage
Change
 

(In millions, except percentages)

       2008             2007           2008     2007    

Corporate-level activity

   $ (1,316 )   $ (1,400 )   6 %   $ (2,737 )   $ (2,494 )   (10 )%

Certain corporate-level activity is not allocated to our segments. Those results include expenses such as broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies. Corporate-level expenses decreased during the three months ended December 31, 2008, primarily due to decreased legal expenses, partially offset by increased headcount-related expenses. Corporate-level expenses increased during the six months ended December 31, 2008, primarily reflecting increased headcount-related expenses and partner payments, partially offset by decreased legal expenses.

This excerpt taken from the MSFT 10-Q filed Oct 23, 2008.

Corporate-Level Activity

 

(In millions, except percentages)

   Three Months Ended
September 30,
    Percentage
Change
 
   2008     2007    

Corporate-level activity

   $ (1,428 )   $ (1,098 )   (30 )%

Certain corporate-level activity is not allocated to our segments. Those results include expenses such as broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies. Corporate-level expenses increased, primarily reflecting an increase in headcount-related expenses and partner payments.

This excerpt taken from the MSFT 10-K filed Jul 31, 2008.

Corporate-Level Activity

 

(In millions, except percentages)    2008     2007     2006    

Percentage
Change 2008

versus 2007

  

Percentage
Change 2007

versus 2006

Corporate-level activity

   $ (6,704 )   $ (4,777 )   $ (4,804 )   (40)%    1%

Certain corporate-level activity, including expenses related to corporate operations associated with broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies, is not allocated to our segments.

 

 

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Fiscal year 2008 compared with fiscal year 2007

Corporate-level expenses increased during fiscal year 2008, reflecting increased costs for legal settlements and legal contingencies and a 12% increase in headcount-related expenses. We incurred $1.8 billion of legal charges during the year primarily related to the European Commission fine of $1.4 billion (899 million) as compared with $511 million of legal charges during the prior year. The increase in headcount-related expenses reflects an increase in headcount during the year.

Fiscal year 2007 compared with fiscal year 2006

Corporate-level expenses increased primarily driven by increased headcount-related expenses offset by decreased costs for legal settlements and legal contingencies. Headcount-related expenses increased 25%, driven by an increase in headcount and an increase in salaries and benefits for existing headcount. We incurred $511 million in legal charges during fiscal year 2007, primarily related to antitrust and unfair competition consumer class actions, intellectual property claims, and an extension payment to Sun Microsystems, Inc. under our Limited Patent Covenant and Standstill Agreement. We incurred $1.3 billion in legal charges during fiscal year 2006 which included settlement expense of $361 million related to our settlement with RealNetworks, Inc. as well as other intellectual property and antitrust matters, a $351 million (281 million) fine imposed by the European Commission in July 2006 related to its 2004 decision in its competition law investigation of Microsoft, and an extension payment to Sun Microsystems, Inc.

This excerpt taken from the MSFT 8-K filed Jul 17, 2008.

Corporate-Level Activity

 

     Three Months
Ended June 30,
    Percentage
Change
    Twelve Months
Ended June 30,
    Percentage
Change
 

(In millions, except percentages)

   2008     2007       2008     2007    

Corporate-level activity

   $ (1,582 )   $ (1,326 )   (19 )%   $ (6,704 )   $ (4,777 )   (40 )%

Certain corporate-level activity including expenses related to corporate operations associated with broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies, is not allocated to our segments. Corporate-level expenses increased during the three months ended June 30, 2008, reflecting a 10% increase in headcount-related expenses, increased corporate marketing and advertising campaigns, and increased consulting and professional fees. Corporate-level expenses increased during the twelve months ended June 30, 2008, reflecting increased costs for legal settlements and legal contingencies and a 12% increase in headcount-related expenses. We incurred $1.8 billion of legal charges during the year primarily related to the European Commission fine of $1.4 billion (€899 million) as compared with $511 million of legal charges during the prior year. The increase in headcount-related expenses reflects an increase in headcount during the year.


This excerpt taken from the MSFT 10-Q filed Apr 24, 2008.

Corporate-Level Activity

 

      Three Months Ended
March 31,
    Percentage
Change
    Nine Months Ended
March 31,
    Percentage
Change
 

(In millions, except percentages)

   2008     2007       2008     2007    

Corporate-level results

   $ (2,779 )   $ (1,430 )   (94 )%   $ (5,122 )   $ (3,451 )   (48 )%

Certain corporate-level results are not allocated to our segments. Those results include expenses related to corporate operations related to broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies.

Corporate-level expenses increased for the three and nine months ended March 31, 2008, primarily reflecting increased costs for legal settlements and legal contingencies and increased headcount-related expenses. We incurred $1.5 billion of legal charges during the three months and $1.8 billion during the nine months ended March 31, 2008, primarily related to the European Commission fine of €899 million as compared with $296 million of legal charges during the three months and $494 million during the nine months ended March 31, 2007, primarily related to antitrust and unfair competition consumer class actions and intellectual property claims. Headcount-related expenses increased 14% during the three months and 13% during the nine months ended March 31, 2008, driven by a 6% increase in headcount over the past 12 months, an increase in salaries and benefits for existing headcount, and an increase in stock-based compensation.

This excerpt taken from the MSFT 10-Q filed Jan 24, 2008.

Corporate-Level Activity

 

      Three months ended
December 31,
    Percentage
Change
    Six months ended
December 31,
    Percentage
Change
 

(In millions, except percentages)

   2007     2006       2007     2006    

Corporate-level results

   $ (1,346 )   $ (1,079 )   (25 )%   $ (2,353 )   $ (2,022 )   (16 )%

Certain corporate-level results are not allocated to our segments. Those results include expenses related to corporate operations related to broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies.

Corporate-level expenses increased for the three months ended December 31, 2007, primarily reflecting increased costs for legal settlements and legal contingencies, increased headcount-related expenses, and increased consulting and professional fees. Corporate-level expenses increased for the six months ended December 31, 2007, primarily reflecting increased headcount-related expenses, increased consulting and professional fees, and increased costs for legal settlements and legal contingencies, partially offset by decreased costs for corporate advertising. We incurred $237 million of legal charges during the three months and $277

 

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million during the six months ended December 31, 2007, compared with $111 million of legal charges during the three months and $198 million during the six months ended December 31, 2006. Headcount-related expenses increased 10% during the three months and 12% during the six months ended December 31, 2007, driven by a 6% increase in headcount over the past twelve months, an increase in salaries and benefits for existing headcount, and an increase in stock-based compensation.

This excerpt taken from the MSFT 10-Q filed Oct 25, 2007.

Corporate-Level Activity

 

     Three months ended
September 30,
    Percentage
Change
 

(In millions, except percentages)

   2007     2006    

Corporate-level activity

   $ (1,006 )   $ (940 )   7 %

Certain corporate-level results are not allocated to our segments. Those results include expenses related to corporate operations related to broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies.

Corporate-level expenses increased primarily reflecting increased headcount-related expenses, partially offset by decreased costs for legal settlements and legal contingencies. Headcount-related expenses increased 15%, driven by an 8% increase in headcount and an increase in salaries and benefits for existing headcount.

 

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We incurred $40 million in legal charges during the three months ended September 30, 2007, compared with $87 million in legal charges during the three months ended September 30, 2006.

This excerpt taken from the MSFT 10-K filed Aug 3, 2007.

Corporate-Level Activity

 

(In millions, except percentages)    2007     2006     2005    

Percent
Change 2007

versus 2006

  

Percent
Change 2006

versus 2005

Corporate-level activity

   $ (5,193 )   $ (5,122 )   $ (5,932 )   (1)%    14%

Certain corporate-level results are not allocated to our segments. Those results include expenses related to corporate operations associated with broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies.

Fiscal year 2007 compared to fiscal year 2006

Corporate-level expenses increased primarily driven by increased headcount-related costs offset by decreased costs for legal settlements and legal contingencies. Headcount-related costs increased 25%, driven by a 19% increase in headcount and an increase in salaries and benefits for existing headcount. We incurred $511 million in legal charges during the twelve months ended June 30, 2007, primarily related to antitrust and unfair competition consumer class actions, intellectual property claims, and an extension payment to Sun Microsystems, Inc. under our Limited Patent Covenant and Standstill Agreement. We incurred $1.32 billion in legal charges during fiscal year 2006 which included settlement expense of $361 million related to our settlement with RealNetworks, Inc. as well as other intellectual property and antitrust matters, a 281 million ($351 million) fine imposed by the European Commission in July 2006 related to its 2004 decision in its competition law investigation of Microsoft, and an extension payment to Sun Microsystems, Inc.

Fiscal year 2006 compared to fiscal year 2005

Corporate-level expenses decreased primarily reflecting decreased costs for legal settlements and legal contingencies partially offset by increased headcount-related costs. We incurred $1.32 billion in legal charges during fiscal year 2006 as compared to $2.31 billion in legal charges incurred during fiscal year 2005 primarily related to settlements with Novell, Inc., Gateway, IBM, and other antitrust and competition law matters. Headcount-related costs increased 5%, driven by a 23% increase in headcount and an increase in salaries and benefits for existing headcount, partially offset by a decrease in stock-based compensation.

This excerpt taken from the MSFT 10-K filed Aug 25, 2006.

Corporate-Level Activity

 

(In millions, except percentages)    2006    2005    2004   

Percent
Change 2006

versus 2005

   

Percent
Change 2005

versus 2004

 

Corporate-level expenses

   $ 5,026    $ 5,910    $ 6,871    (15 )%   (14 )%

Certain corporate-level expenses are not allocated to our segments. Those expenses primarily include corporate operations related to broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies.

Corporate-level expenses decreased in fiscal year 2006, primarily reflecting a $991 million decrease in costs for legal settlements and legal contingencies partially offset by an $84 million increase in headcount-related costs. We incurred $1.32 billion in legal charges during fiscal year 2006 including settlement expense of $361 million related to our settlement with RealNetworks, Inc. as well as other intellectual property and antitrust matters, and the 281 million ($351 million) fine imposed by the European Commission in July 2006 related to its 2004 decision in its competition law investigation of Microsoft, as compared to $2.31 billion in legal charges incurred during the prior year primarily related to settlements with Novell, Inc., Gateway, IBM, and other antitrust and competition law matters. Headcount-related costs increased 5% during the twelve months ended June 30, 2006 reflecting both a 23% increase in headcount and an increase in salaries and benefits for existing headcount, partially offset by a decrease in stock-based compensation.

Corporate-level expenses decreased in fiscal year 2005, primarily as a result of a $736 million reduction in stock-based compensation expense and decreased costs for legal settlements and legal contingencies. In fiscal year 2005, we recognized $2.31 billion in legal charges as compared to $2.53 billion in fiscal year 2004 which included a $1.92 billion charge for a settlement with the Sun Microsystems, Inc., and the fine of 497 million ($605 million) imposed by the European Commission.

This excerpt taken from the MSFT 8-K filed Jul 20, 2006.

Corporate-Level Activity

 

     Three Months
Ended
June 30,
   Percentage
Change
    Twelve Months
Ended
June 30,
  

Percentage

Change

 

(In millions, except percentages)

   2006    2005      2006    2005   

Corporate-level expenses

   $ 1,454    $ 1,820    (20 )%   $ 5,026    $ 5,910    (15 )%


Certain corporate-level expenses are not allocated to our segments. Those expenses primarily include corporate operations related to broad-based sales and marketing, product support services, human resources, legal, finance, information technology, corporate development and procurement activities, research and development and other costs, and legal settlements and contingencies.

Fourth Quarter

Corporate-level expenses decreased primarily reflecting a $379 million decrease in costs for legal settlements and legal contingencies. During the quarter, we incurred $408 million in legal charges primarily as a result of the €281 million ($351 million) fine imposed by the European Commission in July 2006 related to its 2004 decision in its competition law investigation of Microsoft. We incurred $787 million in legal charges during the fourth quarter of fiscal year 2005 primarily related to antitrust and competition law claims, including $626 million for a settlement with IBM. Headcount-related costs increased 9% reflecting both a 23% increase in headcount and an increase in salaries and benefits for existing headcount, partially offset by a decrease in stock-based compensation.

Full Fiscal Year

Corporate-level expenses decreased primarily reflecting a $991 million decrease in costs for legal settlements and legal contingencies partially offset by an $84 million increase in headcount-related costs. We incurred $1.32 billion in legal charges during the twelve months ended June 30, 2006 including settlement expense of $361 million related to our settlement with RealNetworks, Inc. as well as other intellectual property and antitrust matters, and the European Commission fine of €281 million ($351 million), as compared to $2.31 billion in legal charges incurred during the prior year primarily related to settlements with Novell, Inc., Gateway, IBM, and other antitrust and competition law matters. Headcount-related costs increased 5% during the twelve months ended June 30, 2006 reflecting both a 23% increase in headcount and an increase in salaries and benefits for existing headcount, partially offset by a decrease in stock-based compensation.

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