|
Microsoft Corporation
Consolidated profit & loss account (unaudited)Year Ended June 30, 1998
(in millions £) |
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Turnover |
|
8,792 |
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Operating expenses: |
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|
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Cost of sales |
|
727 |
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Research and development |
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1,519 |
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Acquired in-process technology |
|
180 |
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Distribution costs |
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2,071 |
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Administrative expenses |
|
263 |
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Other operating expenses |
|
140 |
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Total operating expenses |
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4,900 |
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Operating profit |
|
3,892 |
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Interest receivable and similar
income |
|
427 |
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Profit before tax |
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4,319 |
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Tax on profits |
|
652 |
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Profit after tax |
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3,667 |
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Preferred Dividends |
|
17 |
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Profit for the financial year |
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3,650 |
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Reconciliation to reported
results presented in accompanying financial statements: |
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Profit for the financial year,
as stated above (UK GAAP) |
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3,650 |
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Tax benefit of stock options |
|
(943 |
) |
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Net income per published US
financial statements |
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2,707 |
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This unaudited Consolidated profit
and loss account has been converted from Microsoft's audited consolidated income statement
into local currency and adjusted for accounting principles and format that are generally
accepted in the United Kingdom. This presentation differs in certain respects from
generally accepted accounting principles in the United States that are used in Microsoft's
primary financial statements and its filings with the United States Securities and
Exchange Commission. The Microsoft 1998 Annual Report to Shareholders and the Form 10-K
are available on this Web site or copies may be obtained by writing to the Company.
All figures have been
translated at the average exchange rate for the year (£1 = USD 1.6474). |