SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

12 Months Ended

Jun. 30, 2014


(In millions)


Year Ended June 30,		2014			2013		2012

Revenue

Devices and Consumer	Licensing	$	18,803		$	19,021	$	19,495
	Hardware:
	Computing and Gaming Hardware		9,628			6,461		6,740
	Phone Hardware		1,985			0		0

	Total D&C Hardware		11,613			6,461		6,740
	Other		7,258			6,618		6,203

	Total Devices and Consumer		37,674			32,100		32,438

Commercial	Licensing		42,027			39,686		37,126
	Other		7,547			5,660		4,644

	Total Commercial		49,574			45,346		41,770
Corporate and Other			(415	)		403		(485	)

Total revenue		$	86,833		$	77,849	$	73,723

Segment Gross Margin


(In millions)


Year Ended June 30,		2014			2013		2012

Gross margin

Devices and Consumer	Licensing	$	17,216		$	17,044	$	17,240
	Hardware:
	Computing and Gaming Hardware		893			956		2,495
	Phone Hardware		54			0		0

	Total D&C Hardware		947			956		2,495
	Other		1,770			2,046		1,998

	Total Devices and Consumer		19,933			20,046		21,733

Commercial	Licensing		38,604			36,261		34,463
	Other		1,856			921		579

	Total Commercial		40,460			37,182		35,042
Corporate and Other			(494	)		372		(582	)

Total gross margin		$	59,899		$	57,600	$	56,193

Operating Expenses by Segment Group

Following is operating expenses by segment group. As discussed above, we do not allocate operating expenses below cost of revenue to our segments.


(In millions)


Year Ended June 30,	2014		2013		2012

Devices and Consumer	$	11,219	$	10,625	$	15,682
Commercial		16,993		16,050		15,064
Corporate and Other		3,928		4,161		3,684

Total operating expenses	$	32,140	$	30,836	$	34,430

Operating Income (Loss) by Segment Group and Corporate and Other Activity

Following is operating income (loss) by segment group.


(In millions)


Year Ended June 30,	2014			2013			2012

Devices and Consumer	$	8,714		$	9,421		$	6,051
Commercial		23,467			21,132			19,978
Corporate and Other		(4,422	)		(3,789	)		(4,266	)

Total operating income	$	27,759		$	26,764		$	21,763

Corporate and Other activity was as follows:


(In millions)


Year Ended June 30,	2014			2013			2012

Corporate ^(a)	$	(3,888	)	$	(4,236	)	$	(3,671	)
Other (adjustments to U.S. GAAP):
Revenue reconciling amounts ^(b)		(415	)		403			(485	)
Cost of revenue reconciling amounts		(79	)		(31	)		(97	)
Operating expenses reconciling amounts		(40	)		75			(13	)

Total Corporate and Other	$	(4,422	)	$	(3,789	)	$	(4,266	)

(a)	Corporate is presented on the basis of our internal accounting policies and excludes the adjustments to U.S. GAAP that are presented separately in those line items.

(b)

Revenue reconciling amounts for fiscal year 2014 included a net $349 million of revenue deferrals related to sales of certain devices bundled with other products and services (“Bundled Offerings”). Revenue reconciling amounts for fiscal years 2012 and 2013 included the deferral and subsequent recognition, respectively, of $540 million of revenue related to the Windows Upgrade Offer.

Revenue Classified by Major Geographic Areas

Revenue, classified by the major geographic areas in which our customers are located, was as follows:


(In millions)


Year Ended June 30,	2014		2013		2012

United States ^(a)	$	43,474	$	41,344	$	38,846
Other countries		43,359		36,505		34,877

Total	$	86,833	$	77,849	$	73,723

(a)	Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.

Revenue Classified by Significant Product and Service Offerings

Revenue from external customers, classified by significant product and service offerings were as follows:


(In millions)


Year Ended June 30,	2014		2013		2012

Microsoft Office system	$	24,323	$	22,995	$	22,299
Windows PC operating system		16,856		17,529		17,320
Server products and tools		17,055		15,408		14,232
Xbox Platform		8,643		7,100		8,045
Consulting and product support services		4,767		4,372		3,976
Advertising		4,016		3,387		3,181
Phone		3,073		615		162
Surface		1,883		853		0
Other		6,217		5,590		4,508

Total	$	86,833	$	77,849	$	73,723

Our total Commercial Cloud revenue was $2.8 billion, $1.3 billion, and $0.7 billion in fiscal years 2014, 2013, and 2012, respectively. These amounts are included in their respective product categories in the table above.

Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company

Long-lived assets, excluding financial instruments and tax assets, classified by the location of the controlling statutory company and with countries over 10% of the total shown separately, were as follows:


(In millions)


June 30,	2014		2013		2012

United States	$	17,653	$	16,615	$	14,081
Finland		9,840		12		8
Luxembourg		6,913		6,943		6,975
Other countries		5,713		4,159		3,827

Total	$	40,119	$	27,729	$	24,891