Microsoft Corp (MSFT)
Earnings Release FY14 Q2
Cash Flows Statements (in millions)
   Three Months Ended
December 31,
   Six Months Ended
December 31,
2013 2012 2013 2012
Operations
Net income $ 6,558 $ 6,377 $ 11,802 $ 10,843
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other 1,261 1,009 2,215 1,719
Stock-based compensation expense 591 603 1,226 1,206
Net recognized losses on investments and derivatives 47 22 140 33
Excess tax benefits from stock-based compensation (20) (9) (225) (186)
Deferred income taxes (176) 140 228 178
Deferral of unearned revenue 9,845 10,737 17,281 18,946
Recognition of unearned revenue (10,578) (10,483) (20,255) (19,253)
Changes in operating assets and liabilities:
Accounts receivable (4,875) (4,488) 1,742 1,668
Inventories 1,029 (33) 362 (506)
Other current assets (95) 150 (651) (235)
Other long-term assets (315) (80) (396) (313)
Accounts payable 602 685 326 118
Other current liabilities 388 168 (867) (1,119)
Other long-term liabilities 151 (18) (310) 165
Net cash from operations 4,413 4,780 12,618 13,264
Financing
Short-term debt repayments, maturities less than 90 days, net (712) 0 0 0
Proceeds from issuance of debt 8,262 2,232 8,850 2,232
Repayments of debt (588) 0 (1,588) 0
Common stock issued 117 145 320 562
Common stock repurchased (2,113) (1,658) (4,301) (3,290)
Common stock cash dividends paid (2,332) (1,933) (4,248) (3,609)
Excess tax benefits from stock-based compensation 20 9 225 186
Other (39) (16) (39) (16)
Net cash from (used in) financing 2,615 (1,221) (781) (3,935)
Investing
Additions to property and equipment (1,732) (930) (2,963) (1,533)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets (139) (311) (154) (1,456)
Purchases of investments (13,126) (10,074) (27,894) (30,212)
Maturities of investments 1,451 1,989 1,798 3,248
Sales of investments 12,354 7,126 23,471 20,433
Securities lending payable 167 (393) 103 (792)
Net cash used in investing (1,025) (2,593) (5,639) (10,312)
Effect of exchange rates on cash and cash equivalents 33 15 57 62
Net change in cash and cash equivalents 6,036 981 6,255 (921)
Cash and cash equivalents, beginning of period 4,023 5,036 3,804 6,938
Cash and cash equivalents, end of period $ 10,059 $ 6,017 $ 10,059 $ 6,017
 
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Related Information
FY14 Earnings Release Schedule
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