# embeddings_queue

created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9c24-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 57, "chroma:document": "and amounts paid to Google Network partners are recorded as cost of revenues. Where we are the principal, we \ncontrol the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to \nmonetize the advertising inventory before it is transferred to our customers and is further supported by us being \nprimarily responsible to our customers and having a level of discretion in establishing pricing.\nGoogle  Subscriptions, Platforms, and Device s\nGoogle subscriptions, platforms, and devices revenues consist of revenues from:\n\u2022consumer subscriptions, which primarily include revenues from YouTube services, such YouTube TV, YouTube \nMusic and Premium, and NFL Sunday Ticket, as well as Google One;\n\u2022platforms, which primarily include revenues from Google Play from the sales of apps and in-app purchases;\n\u2022devices, which primarily include sales of the Pixel family of devices; and\n\u2022other products and services.\nSubscription revenues are recognized ratably over the period of the subscription, primarily monthly . We report \nrevenues from Google Play app sales and in-app purchases on a net basis, because our performance obligation is to \nfacilitate a transaction between app developers and end users, for which we earn a service fee. \nGoogle Cloud Revenues\nGoogle Cloud revenues consist of revenues from:\n\u2022Google Cloud Platform, which generates consumption-based fees and subscriptions for infrastructure, \nplatform, and other services. These services provide access to solutions such as cybersecurity, databases, \nanalytics, and AI offerings including our AI infrastructure, Vertex AI platform, and Duet AI for Google Cloud;\n\u2022Google Workspace, which includes subscriptions for cloud-based communication and collaboration tools for \nenterprises, such as Calendar, Gmail, Docs, Drive, and Meet, with integrated features like Duet AI in Google \nWorkspace; and\n\u2022other enterprise services.\nOur cloud services are generally provided on either a consumption or subscription basis and may have contract \nterms longer than a year. Revenues related to cloud services provided on a consumption basis are recognized when \nthe customer utilizes the services, based on the quantity of services consumed. Revenues related to cloud services \nprovided on a subscription basis are recognized ratably over the contract term as the customer receives and \nconsumes the benefits of the cloud services.\nArrangements with Multiple Performance Obligations\nOur contracts with customers may include multiple performance obligations. For such arrangements, we allocate"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9c7e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 57, "chroma:document": "revenues to each performance obligation based on its relative standalone selling price. We generally determine \nstandalone selling prices based on the prices charged to customers.\nCustomer Incentives and Credits\nCertain customers receive cash-based incentives or credits, which are accounted for as variable consideration. \nWe estimate these amounts based on the expected amount to be provided to customers and reduce revenues. We \nbelieve that there will not be significant changes to our estimates of variable consideration.\nSales Commissions\nWe expense sales commissions when incurred when the period of the expected benefit is one year or less. We \nrecognize an asset for certain sales commissions and  amortize i f the expected benefit period is greater than one year. \nThese costs are recorded within sales and marketing expenses.\nCost of Revenues\nCost of revenues consists of TAC and other costs of revenues.\n\u2022TAC includes: \n\u25e6amounts paid to our distribution partners who make available our search access points and services. \nOur distribution partners include browser providers, mobile carriers, original equipment manufacturers, \nand software developers; and\n\u25e6amounts paid to Google Network partners primarily for ads displayed on their properties.Table of Contents Alphabet Inc.\n57."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9cd8-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 58, "chroma:document": "\u2022Other cost of revenues includes:\n\u25e6compensation expense related to our data centers and other operations such as content review and \ncustomer and product support;\n\u25e6content acquisition costs, which are payments to content providers from whom we license video and \nother content for distribution on YouTube and Google Play (we pay fees to these content providers \nbased on revenues generated or a flat fee);\n\u25e6depreciation expense related to our technical infrastructure; and\n\u25e6inventory and other costs related to the devices we sell.\nSoftware Development  Costs\nWe expense software development costs, including costs to develop software products or the software \ncomponent of products to be sold, leased, or marketed to external users, before technological feasibility is reached. \nTechnological feasibility is typically reached shortly before the release of such products. As a result, development costs \nthat meet the criteria for capitalization were not material for the periods presented.\nSoftware development costs also include costs to develop software to be used solely to meet internal needs and \ncloud-based applications used to deliver our services. We capitalize development costs related to these software \napplications once the preliminary project stage is complete and it is probable that the project will be completed and the \nsoftware will be used to perform the function intended. Costs capitalized for developing such software applications \nwere not material for the periods presented.\nStock-based Compensation  \nStock-based compensation (SBC)  primarily consists of Alphabet restricted stock units (RSUs). RSUs are equity \nclassified and measured at the fair market value of the underlying stock at the grant date. We recognize RSU expense \nusing the straight-line attribution method over the requisite service period and account for forfeitures as they occur.\nFor RSUs, shares are issued on the vesting dates net of the applicable statutory income tax withholding to be \npaid by us on behalf of our employees. As a result, fewer shares are issued than the number of RSUs outstanding, and \nthe income tax withholding is recorded as a reduction to additional paid-in capital.\nAdditionally, SBC includes other stock-based awards, such as performance stock units (PSUs) that include \nmarket conditions and awards that may be settled in cash or the stock of certain Other Bet companies . PSUs and  \ncertain awards granted by Other Bet companies  are equity classified and expense is recognized over the requisite"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9d28-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 58, "chroma:document": "service period. Certain awards granted by Other Bet companies are liability classified and remeasured at fair value \nthrough settlement. The fair value of awards granted by Other Bet companies is based on the equity valuation of the \nrespective Other Bet company.\nAdvertising and Promotional Expenses\nWe expense advertising and promotional costs in the period in which they are incurred.  For the years ended \nDecember 31, 2021 , 2022 , and 2023 , advertising and promotional expenses totaled approximately $7.9 billion , $9.2 \nbillion , and $8.7 billion , respectively.\nPerformance Fees\nPerformance fees refer to compensation arrangements with payouts based on realized returns from certain \ninvestments. We record compensation expense based on the estimated payouts on an ongoing basis, which may \nresult in expense recognized before investment returns are realized and compensation is paid and may require the use \nof unobservable inputs . Performance fees are recorded as a component of OI&E.\nFair Value Measurements \nFair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a \nliability in an orderly transaction between market participants. As such, fair value is a market-based measurement that \nis determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and \nliabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based \non the observability of the inputs available in the market used to measure fair value:\nLevel 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active \nmarkets.Table of Contents Alphabet Inc.\n58."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9db4-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 59, "chroma:document": "Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for \nidentical or similar instruments in markets that are not active, and model-based valuation techniques for which all \nsignificant inputs are observable in the market or can be derived from observable market data. Where applicable, \nthese models project future cash flows and discount the future amounts to a present value using market-based \nobservable inputs including interest rate curves, foreign exchange rates, and credit ratings.\nLevel 3 - Unobservable inputs that are supported by little or no market activities.\nThe fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of \nunobservable inputs when measuring fair value. The determination of fair value involves the use of appropriate \nvaluation methods and relevant inputs into valuation models.\nOur financial assets and liabilities that are measured at fair value on a recurring basis include cash equivalents, \nmarketable securities, derivative financial instruments, and certain non-marketable debt securities. Our financial assets \nmeasured at fair value on a nonrecurring basis include non-marketable equity securities. Other financial assets and \nliabilities are carried at cost with fair value disclosed, if required.\nWe measure certain other instruments, including SBC awards settled in the stock of O ther Bet companies, and \ncertain assets and liabilities acquired in a business combination, also at fair value on a nonrecurring basis. \nFinancial Instruments\nOur financial instruments include cash, cash equivalents, marketable and non-marketable securities, derivative \nfinancial instruments and accounts receivable.\nCredit Risks\nWe are subject to credit risk primarily from cash equivalents, marketable debt securities, derivative financial \ninstruments, including foreign exchange contracts, and accounts receivable.  We manage our credit risk exposure \nthrough timely assessment of our counterparty creditworthiness, credit limits and use of collateral management. \nForeign exchange contracts are transacted with various financial institutions with high credit standing. Accounts \nreceivable are typically unsecured and are derived from revenues earned from customers located around the world. \nWe manage our credit risk exposure by performing ongoing evaluations to determine customer credit and we limit the \namount of credit we extend. We generally do not require collateral from our customers.\nCash Equivalents\nWe invest excess cash primarily in government bonds, corporate debt securities, mortgage-backed and asset-\nbacked securities, time deposits, and money market funds."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9e04-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 59, "chroma:document": "backed securities, time deposits, and money market funds.\nMarketable Securities\nWe classify all marketable debt securities that have effective maturities of three months or less from the date of \npurchase as cash equivalents and those with effective maturities of greater than three months as marketable securities \non our Consolidated Balance Sheets. We determine the appropriate classification of our investments in marketable \ndebt securities at the time of purchase and reevaluate such designation at each balance sheet date. We have \nclassified and accounted for our marketable debt securities as available-for-sale. After consideration of our risk versus \nreward objectives, as well as our liquidity requirements, we may sell these debt securities prior to their effective \nmaturities. As we view these securities as available to support current operations, we classify highly liquid securities \nwith maturities beyond 12 months as current assets under the caption marketable securities on the Consolidated \nBalance Sheets. We carry these securities at fair value, and report the unrealized gains and losses, net of taxes, as a \ncomponent of stockholders\u2019 equity, except for the changes in allowance for expected credit losses, which are recorded \nin OI&E. For certain marketable debt securities we have elected the fair value option, for which changes in fair value \nare recorded in OI&E. We determine any realized gains or losses on the sale of marketable debt securities on a \nspecific identification method, and we record such gains and losses as a component of OI&E .\nOur investments in marketable equity securities are measured at fair value with the related gains and losses, \nincluding unrealized, recognized in OI&E.  We classify our marketable equity securities subject to long-term lock-up \nrestrictions beyond 12 months as other non-current assets on the Consolidated Balance Sheets.\nNon-Marketable Securities\nNon-marketable securities primarily consist of equity securities . We account for non-marketable equity securities \nthrough which we exercise significant influence but do not have control over the investee under the equity method. All \nother non-marketable equity securities that we hold are primarily accounted for under the measurement alternative. \nUnder the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus Table of Contents Alphabet Inc.\n59."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9e5e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 60, "chroma:document": "changes resulting from observable price changes in orderly transactions for identical or similar investments of the \nsame issuer.  Adjustments are determined primarily based on a market approach  as of the transaction date and are \nrecorded as a component of OI&E.\nNon-marketable securities that do not have effective contractual maturity dates are classified as other non-\ncurrent assets on the Consolidated Balance Sheets.\nDerivative Financial Instruments\nSee Note 3  for the accounting policy pertaining to derivative financial instruments. \nAccounts Receivable\nOur payment terms for accounts receivable vary by the types and locations of our customers and the products or \nservices offered. The term between invoicing and when payment is due is not significant. For certain products or \nservices and customers, we require payment before the products or services are delivered to the customer. \nAdditionally, accounts receivable includes amounts for services performed in advance of the right to invoice the \ncustomer.\nWe maintain an allowance for credit losses for accounts receivable, which is recorded as an offset to accounts \nreceivable, and changes in such are classified as general and administrative expense in the Consolidated Statements \nof Income. We assess collectibility by reviewing accounts receivable on a collective basis where similar characteristics \nexist and on an individual basis when we identify specific customers with known disputes or collectibility issues. In \ndetermining the amount of the allowance for credit losses, we consider historical collectibility based on past due status \nand make judgments about the creditworthiness of customers based on ongoing credit evaluations. We also consider \ncustomer-specific information, current market conditions, and reasonable and supportable forecasts of future economic \nconditions.\nOther\nOur financial instruments also include debt and equity investments in companies with which we also entered into \ncommercial arrangements at or near the same time.  For these transactions, judgment is required in assessing the \nsubstance of the arrangements, including assessing whether the components of the arrangements should be \naccounted for as separate transactions under the applicable GAAP, and determining the value of the components of \nthe arrangements, including the fair value of the investments. Additionally, if our investment in such companies \nbecomes impaired, any remaining performance obligations would be reassessed and may be reduced.\nImpairment of Investments\nWe periodically review our debt and non-marketable equity securities for impairment."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9eae-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 60, "chroma:document": "We periodically review our debt and non-marketable equity securities for impairment. \nFor debt securities in an unrealized loss position, we determine whether a credit loss exists. The credit loss is \nestimated by considering available information relevant to the collectibility of the security and information about past \nevents, current conditions, and reasonable and supportable forecasts. Any credit loss is recorded as a charge to OI&E, \nnot to exceed the amount of the unrealized loss. Unrealized losses other than the credit loss are recognized in AOCI. If \nwe have an intent to sell, or if it is more likely than not that we will be required to sell a debt security in an unrealized \nloss position before recovery of its amortized cost basis, we will write down the security to its fair value and record the \ncorresponding charge as a component of OI&E. \nFor non-marketable equity securities, including equity method investments, we consider whether impairment \nindicators exist by evaluating the companies' financial and liquidity position and access to capital resources, among \nother indicators. If the assessment indicates that the investment is impaired, we write down the investment to its fair \nvalue by recording the corresponding charge as a component of OI&E. We prepare quantitative measurements of the \nfair value of our equity investments using a market approach or an income approach.\nInventory\nInventory consists primarily of finished goods and is stated at the lower of cost and net realizable value. Cost is \ncomputed using the first-in, first-out method.\nVariable Interest Entities\nWe determine at the inception of each arrangement whether an entity in which we have made an investment or in \nwhich we have other variable interests is considered a variable interest entity (VIE). We consolidate VIEs when we are \nthe primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct activities that most \nsignificantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses Table of Contents Alphabet Inc.\n60."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9f08-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 61, "chroma:document": "or benefits. If we are not the primary beneficiary in a VIE, we account for the investment or other variable interests in a \nVIE in accordance with applicable GAAP.\nPeriodically, we assess whether any changes in our interest or relationship with the entity affect our determination \nof whether the entity is a VIE and, if so, whether we are the primary beneficiary. \nProperty and Equipment\nProperty and equipment includes the following categories: land and buildings, information technology assets, \nconstruction in progress, leasehold improvements, and furniture and fixtures. Land and buildings include land, offices, \ndata centers, and related building improvements. Information technology assets include servers and network \nequipment. Construction in progress is the construction or development of property and equipment that have not yet \nbeen placed in service. \nProperty and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the \nstraight-line method over the estimated useful lives of the assets, which we regularly evaluate. Land is not depreciated. \nWe depreciate buildings over periods of seven  to 25 years . We depreciate information technology assets generally \nover a period of six years  for servers and network equipment.  We depreciate leasehold improvements over the shorter \nof the remaining lease term or the estimated useful lives of the assets. Depreciation for buildings, information \ntechnology assets, leasehold improvements, and furniture and fixtures commences once they are ready for our \nintended use.\nGoodwill\nWe allocate goodwill to reporting units based on the expected benefit from the business combination. We \nevaluate our reporting units periodically, as well as when changes in our operating segments occur. For changes in \nreporting units, we reassign goodwill using a relative fair value allocation approach. We test our goodwill for \nimpairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be \nimpaired. Goodwill impairments were not material for the periods presented.\nLeases\nWe determine if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-\nlease components. Payments under our lease arrangements are primarily fixed. Non-lease components primarily \ninclude payments for maintenance and utilities. We combine fixed payments for non-lease components with lease \npayments and account for them together as a single lease component which increases the amount of our lease assets \nand liabilities."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9f62-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 61, "chroma:document": "and liabilities.\nCertain lease agreements contain variable payments, which are expensed as incurred and not included in the \nlease assets and liabilities. These amounts  primarily  include  payments affected by the Consumer Price Index, and \npayments for maintenance and utilities.\nLease assets and liabilities are recognized at the present value of the future lease payments at the lease \ncommencement date. The interest rate used to determine the present value of the future lease payments is our \nincremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental \nborrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, \nand in economic environments where the leased asset is located. Our lease terms include periods under options to \nextend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the \nbase, non-cancelable, lease term when determining the lease assets and liabilities. Lease assets also include any \nprepaid lease payments and lease incentives.\nOperating lease assets and liabilities are included on our Consolidated Balance Sheets. The current portion of our \noperating lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion is \nincluded in operating lease liabilities. Finance lease assets are included in property and equipment, net. Finance lease \nliabilities are included in accrued expenses and other current liabilities or long-term debt.\nOperating lease expense (excluding variable lease costs) is recognized on a straight-line basis over the lease \nterm.\nImpairment of Long-Lived Assets\nWe review lease s, property and equipment, and intangible assets,  excluding goodwill, for impairment when \nevents or changes in circumstances indicate the carrying amount may not be recoverable. The evaluation is performed \nat the lowest level of identifiable cash flows independent of other assets. We measure recoverability of these assets by \ncomparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected Table of Contents Alphabet Inc.\n61."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8b9fb2-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 62, "chroma:document": "to generate. If the carrying value of the assets or asset group is not recoverable, the impairment recognized is \nmeasured as the amount by which the carrying value exceeds its fair value. \nIncome T axes\nWe account for income taxes using the asset and liability method, under which we recognize the amount of taxes \npayable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of \nevents that have been recognized in our financial statements or tax returns. We measure current and deferred tax \nassets and liabilities based on provisions of enacted tax law. We evaluate the likelihood of future realization  of our \ndeferred tax assets based on all available evidence and establish a valuation allowance to reduce deferred tax assets \nwhen it is more likely than not that they will not be realized or release a valuation allowance to increase deferred tax \nassets when it is more likely than not that they will be realized. We have elected to account for the tax effects of the \nglobal intangible low tax Income provision as a current period expense.\nWe recognize the financial statement effects of a tax position when it is more likely than not that, based on \ntechnical merits, the position will be sustained upon examination. The tax benefits of the position recognized in the \nfinancial statements are then measured based on the largest amount of benefit that is greater than 50% likely to be \nrealized upon settlement with a taxing authority. In addition, we recognize interest and penalties related to \nunrecognized tax benefits as a component of the income tax provision.\nBusiness Combinations\nWe include the results of operations of the businesses that we acquire as of the acquisition date. We allocate the \npurchase price of the acquisitions to the assets acquired and liabilities assumed based on their estimated fair values, \nexcept for revenue contracts acquired, which are recognized in accordance with our revenue recognition policy. The \nexcess of the purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. \nAcquisition-related expenses are recognized separately from the business combination and are expensed as incurred.\nForeign Currency\nWe translate the financial statements of our international subsidiaries to U.S. dollars using month-end exchange \nrates for assets and liabilities, and average rates for the annual period derived from month-end exchange rates for \nrevenues, costs, and expenses. We record translation gains and losses in AOCI as a component of stockholders\u2019"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba016-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 62, "chroma:document": "equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction \ncurrency to functional currency as a component of foreign currency exchange gain (loss) in OI&E .\nRecent  Accounting Pronouncements\nIn November 2023, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update \n(ASU) 2023-07 \"Segment Reporting (Topic 280):Improvements to Reportable Segment Disclosures\" which expands \nannual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about \nsignificant segment expenses. ASU 2023-07  is effective for our annual periods beginning  January 1, 2024, and for \ninterim periods beginning January 1, 2025, with early adoption permitted. We  are currently evaluating the potential \neffect that the updated standard will have on our financial statement disclosures.\nIn December 2023, the FASB issued ASU 2023-09 \"Income Taxes (Topics 740): Improvements to Income Tax \nDisclosures\"  to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and \nincome taxes paid. ASU 2023-09  is effective for our annual periods beginning J anuary 1, 2025, with early adoption \npermitted. W e are currently evaluating the potential effect that the updated standard will have on our financial \nstatement disclosures.\nPrior Period Reclassifications\nCertain amounts in prior periods have been reclassified to conform with current period presentation.Table of Contents Alphabet Inc.\n62."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba066-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 63, "chroma:document": "Note 2.    Revenues  \nDisaggregated Revenues\nThe following table presents revenues disaggregated by type (in millions):\nYear Ended December 31,\n2021 2022 2023\nGoogle Search & other $ 148,951 $ 162,450 $ 175,033 \nYouTube ads  28,845  29,243  31,510 \nGoogle Network  31,701  32,780  31,312 \nGoogle advertising  209,497  224,473  237,855 \nGoogle subscriptions, platforms, and devices  28,032  29,055  34,688 \nGoogle Services total  237,529  253,528  272,543 \nGoogle Cloud  19,206  26,280  33,088 \nOther Bets  753  1,068  1,527 \nHedging gains (losses)  149  1,960  236 \nTotal revenues $ 257,637 $ 282,836 $ 307,394 \nNo individual customer or groups of affiliated customers represented more than 10% of our revenues in 2021 , \n2022 , or 2023 . \nThe following table presents revenues disaggregated by geography, based on the addresses of our customers (in \nmillions):\nYear Ended December 31,\n 2021 2022 2023\nUnited States $ 117,854  46 % $ 134,814  48 % $ 146,286  47 %\nEMEA(1) 79,107  31  82,062  29  91,038  30 \nAPAC(1) 46,123  18  47,024  16  51,514  17 \nOther Americas(1) 14,404  5  16,976  6  18,320  6 \nHedging gains (losses)  149  0  1,960  1  236  0 \nTotal revenues $ 257,637  100 % $ 282,836  100 % $ 307,394  100 %"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba0c0-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 63, "chroma:document": "(1)Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (\"Other \nAmericas\").\nRevenue Backlog\nAs of December 31, 2023 , we had $74.1 billion  of remaining performance obligations (\u201crevenue backlog\u201d), \nprimarily related to Google Cloud. Our revenue backlog represents commitments in customer contracts for future \nservices that have not yet been recognized as revenue. The estimated revenue backlog and timing of revenue \nrecognition for these commitments is largely driven by our ability to deliver in accordance with relevant contract terms \nand when our customers utilize services . We expect to recognize approximately half of the revenue backlog as \nrevenues over the next 24 months  with the remaining to be recognized thereafter. Revenue backlog includes related \ndeferred revenue currently recorded as well as amounts that will be invoiced in future periods, and excludes contracts \nwith an original expected term of one year or less and cancellable contracts.\nDeferred Revenues\nWe record deferred revenues when cash payments are received or due in advance of our performance, including \namounts which are refundable. Deferred revenues primarily relate to Google Cloud and Google subscriptions, \nplatforms, and devices . Total deferred revenue as of December 31, 2022  was $4.5 billion , of which $2.4 billion  was \nrecognized as revenues for the year ended December 31, 2023 .\nNote 3.    Financial Instruments  \nFair Value Measurements\nInvestments Measured at Fair Value on a Recurring Basis\nCash, cash equivalents, and marketable equity securities are measured at fair value and classified within Level 1 Table of Contents Alphabet Inc.\n63."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba11a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 64, "chroma:document": "and Level 2 in the fair value hierarchy, because we use quoted prices for identical assets in active markets or inputs \nthat are based upon quoted prices for similar instruments in active markets.\nDebt securities are measured at fair value and classified within Level 2 in the fair value hierarchy, because we use \nquoted market prices to the extent available or alternative pricing sources and models utilizing market observable \ninputs to determine fair value. For certain marketable debt securities, we have elected the fair value option for which \nchanges in fair value are recorded in OI&E. The fair value option was elected for these securities to align with the \nunrealized gains and losses from related derivative contracts.\nThe following tables summarize our cash, cash equivalents, and marketable securities measured at fair value on \na recurring basis (in millions):\nAs of December 31, 2022\nFair Value \nHierarchyAdjusted \nCostGross \nUnrealized \nGainsGross \nUnrealized \nLosses Fair ValueCash and \nCash \nEquivalentsMarketable \nSecurities\nFair value changes \nrecorded in other \ncomprehensive income\nTime deposits Level 2 $ 5,297 $ 0 $ 0 $ 5,297 $ 5,293 $ 4 \nGovernment bonds Level 2 41,036  64  (2,045)  39,055  283  38,772 \nCorporate debt securities Level 2 28,578  8  (1,569)  27,017  1  27,016 \nMortgage-backed and \nasset-backed securities Level 2 16,176  5  (1,242)  14,939  0  14,939 \nTotal investments with \nfair value change \nreflected in other \ncomprehensive \nincome(1)$ 91,087 $ 77 $ (4,856) $ 86,308 $ 5,577 $ 80,731 \nFair value adjustments \nrecorded in net income\nMoney market funds Level 1 $ 7,234 $ 7,234 $ 0 \nCurrent marketable \nequity securities(2)Level 1\n 4,013  0  4,013"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba16a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 64, "chroma:document": "4,013  0  4,013 \nMutual funds Level 2  339  0  339 \nGovernment bonds Level 2  1,877  440  1,437 \nCorporate debt securities Level 2  3,744  65  3,679 \nMortgage-backed and \nasset-backed securitiesLevel 2\n 1,686  2  1,684 \nTotal investments with \nfair value change \nrecorded in net \nincome $ 18,893 $ 7,741 $ 11,152 \nCash  0  8,561  0 \nTotal $ 91,087 $ 77 $ (4,856) $ 105,201 $ 21,879 $ 91,883 \n(1)Represents gross unrealized gains and losses for debt securities recorded to AOCI.\n(2)The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $803 million  as of \nDecember 31, 2022  is included within other non-current assets.Table of Contents Alphabet Inc.\n64."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba1c4-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 65, "chroma:document": "As of December 31, 2023\nFair Value \nHierarchyAdjusted \nCostGross \nUnrealized \nGainsGross \nUnrealized \nLosses Fair ValueCash and \nCash \nEquivalentsMarketable \nSecurities\nFair value changes \nrecorded in other \ncomprehensive income\nTime deposits Level 2 $ 2,628 $ 0 $ 0 $ 2,628 $ 2,628 $ 0 \nGovernment bonds Level 2  38,106  233  (679)  37,660  1,993  35,667 \nCorporate debt securities Level 2  22,457  112  (637)  21,932  0  21,932 \nMortgage-backed and \nasset-backed securities Level 2 17,243  88  (634)  16,697  0  16,697 \nTotal investments with \nfair value change \nreflected in other \ncomprehensive \nincome(1)$ 80,434 $ 433 $ (1,950) $ 78,917 $ 4,621 $ 74,296 \nFair value adjustments \nrecorded in net income\nMoney market funds Level 1 $ 6,480 $ 6,480 $ 0 \nCurrent marketable \nequity securities(2)Level 1 4,282  0 4,282\nMutual funds Level 2 311  0 311\nGovernment bonds Level 2 1,952  347 1,605\nCorporate debt securities Level 2 3,782  91 3,691\nMortgage-backed and \nasset-backed securitiesLevel 2\n2,683  0 2,683\nTotal investments with \nfair value change \nrecorded in net \nincome $ 19,490 $ 6,918 $ 12,572 \nCash  0  12,509  0 \nTotal $ 80,434 $ 433 $ (1,950) $ 98,407 $ 24,048 $ 86,868 \n(1)Represents gross unrealized gains and losses for debt securities recorded to AOCI."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba214-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 65, "chroma:document": "(2)The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.4 billion  as of \nDecember 31, 2023  is included within other non-current assets.\nInvestments Measured at Fair Value on a Nonrecurring Basis\nOur non-marketable equity securities are investments in privately held companies without readily determinable \nmarket values. The carrying value of our non-marketable equity securities is adjusted to fair value upon observable \ntransactions for identical or similar investments of the same issuer or impairment. Non-marketable equity securities \nthat have been remeasured during the period based on observable transactions are classified within Level 2 or Level 3 \nin the fair value hierarchy because we estimate the value based on valuation methods, including option  pricing models, \nmarket comparable approach, and common stock equivalent method,  which may include a combination of the \nobservable transaction price at the transaction date and other unobservable inputs including volatility,  expected time to \nexit, risk free rate, and the rights, and obligations of the securities we hold.  These inputs significantly vary based on \ninvestment type. The fair value of non-marketable equity securities that have been remeasured due to impairment are \nclassified within Level 3.\nAs of  December 31, 2023 , the carrying value of our non-marketable equity securities was $28.8 billion , of which \n$13.7 billion  were remeasured at fair value during the year ended December 31, 2023 , and primarily classified within \nLevel 2 of the fair value hierarchy at the time of measurement. Table of Contents Alphabet Inc.\n65."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba26e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 66, "chroma:document": "Debt Securities\nThe following table summarizes the estimated fair value of investments in available-for-sale marketable debt \nsecurities by effective contractual maturity dates (in millions):\nAs of December 31, \n2023\nDue in one year or less $ 11,231 \nDue in one year through five years  41,477 \nDue in five years through 10 years  15,351 \nDue after 10 years  14,216 \nTotal $ 82,275 \nThe following tables present fair values and gross unrealized losses recorded to AOCI, aggregated by \ninvestment category and the length of time that individual securities have been in a continuous loss position (in \nmillions):\n As of December 31, 2022\n Less than 12 Months 12 Months or Greater Total\n Fair ValueUnrealized\nLoss Fair ValueUnrealized\nLoss Fair ValueUnrealized\nLoss\nGovernment bonds $ 21,039 $ (1,004) $ 13,438 $ (1,041) $ 34,477 $ (2,045) \nCorporate debt securities  11,228  (440)  15,125  (1,052)  26,353  (1,492) \nMortgage-backed and asset-backed \nsecurities  7,725  (585)  6,964  (657)  14,689  (1,242) \nTotal $ 39,992 $ (2,029) $ 35,527 $ (2,750) $ 75,519 $ (4,779) \n As of December 31, 2023\n Less than 12 Months 12 Months or Greater Total\n Fair ValueUnrealized\nLoss Fair ValueUnrealized\nLoss Fair ValueUnrealized\nLoss\nGovernment bonds $ 1,456 $ (22) $ 13,897 $ (657) $ 15,353 $ (679) \nCorporate debt securities  827  (5)  15,367  (592)  16,194  (597) \nMortgage-backed and asset-backed \nsecurities  2,945  (26)  7,916  (608)  10,861  (634)"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba2be-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 66, "chroma:document": "Total $ 5,228 $ (53) $ 37,180 $ (1,857) $ 42,408 $ (1,910) \nWe determine realized gains or losses on the sale or extinguishment of debt securities on a specific identification \nmethod. The following table summarizes gains and losses for debt securities, reflected as a component of OI&E (in \nmillions): \nYear Ended December 31,\n 2021 2022 2023\nUnrealized gain (loss) on fair value option debt securities $ (122) $ (557) $ 386 \nGross realized gain on debt securities  432  103  182 \nGross realized loss on debt securities  (329)  (1,588)  (1,833) \n(Increase) decrease in allowance for credit losses  (91)  (22)  50 \nTotal gain (loss) on debt securities recognized in other income \n(expense), net $ (110) $ (2,064) $ (1,215) Table of Contents Alphabet Inc.\n66."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba318-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 67, "chroma:document": "Equity Investments\nThe carrying value of equity securities is measured as the total initial cost plus the cumulative net gain (loss). \nGains and losses, including impairments , are included as a component of OI&E in the Consolidated Statements of \nIncome. See  Note 7  for further details on OI&E.\nThe carrying values for marketable and non-marketable equity securities are summarized below (in millions):\nAs of December 31, 2022 As of December 31, 2023\nMarketable \nEquity \nSecuritiesNon-Marketable \nEquity \nSecurities TotalMarketable \nEquity \nSecuritiesNon-Marketable \nEquity \nSecurities Total\nTotal initial cost $ 5,764 $ 16,157 $ 21,921 $ 5,418 $ 17,616 $ 23,034 \nCumulative net \ngain (loss)(1) (608)  12,372  11,764  555  11,150  11,705 \nCarrying value $ 5,156 $ 28,529 $ 33,685 $ 5,973 $ 28,766 $ 34,739 \n(1)Non-marketable equity securities cumulative net gain (loss) is comprised of $16.8 billion  gains and $4.5 billion  losses \n(including impairments) as of December 31, 2022  and $18.1 billion  gains and $6.9 billion  losses (including impairments) as of \nDecember 31, 2023 .\nGains and Losses on Marketable and Non-marketable Equity Securities\nGains and losses (including impairments), net, for marketable and non-marketable equity securities included in \nOI&E are summarized below (in millions):\nYear Ended December 31,\n 2021 2022 2023\nRealized net gain (loss) on equity securities sold during the \nperiod $ 1,196 $ (442) $ 690 \nUnrealized net gain (loss) on marketable equity securities  1,335  (3,242)  790 \nUnrealized net gain (loss) on non-marketable equity securities(1) 9,849  229  (1,088)"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba372-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 67, "chroma:document": "Total gain (loss) on equity securities in other income \n(expense), net $ 12,380 $ (3,455) $ 392 \n(1)Unrealized gain (loss) on non-marketable equity securities accounted for under the measurement alternative is comprised of \n$10.0 billion , $3.3 billion , and $1.8 billion  of upward adjustments as of December 31, 2021 , 2022 , and 2023 , respectively, and \n$122 million , $3.0 billion , and $2.9 billion  of downward adjustments (including impairments) as of December 31, 2021 , 2022 , \nand 2023 , respectively.\nIn the table above, realized net gain (loss) on equity securities sold during the period reflects the difference \nbetween the sale proceeds and the carrying value of the equity securities at the beginning of the period or the \npurchase date, if later.\nCumulative net gains (losses) on equity securities sold during the period, which is summarized in the following \ntable (in millions), represents the total net gains (losses) recognized after the initial purchase date of the equity security \nsold during the period. While these net gains (losses) may have been reflected in periods prior to the period of sale, we \nbelieve they are important supplemental information as they reflect the economic net gains (losses) on the securities \nsold during the period. Cumulative net gains (losses) are calculated as the difference between the sale price and the \ninitial purchase price for the equity security sold during the period.\nEquity Securities Sold During the Year \nEnded December 31,\n 2022 2023\nTotal sale price $ 1,784 $ 1,981 \nTotal initial cost  937  1,512 \nCumulative net gains (losses) $ 847 $ 469 \nEquity  Securities Accounted for Under the Equity Method\nAs of December 31, 2022  and 2023 , equity securities accounted for under the equity method had a carrying value \nof approximately $1.5 billion  and $1.7 billion , respectively. Our share of gains and losses, including impairments, are"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba3c2-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 67, "chroma:document": "included as a component of OI&E, in the Consolidated Statements of Income. See Note 7  for further details on OI&E.  Table of Contents Alphabet Inc.\n67."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba44e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 68, "chroma:document": "Derivative Financial Instruments\nWe use derivative instruments to manage risks relating to our ongoing business operations. The primary risk \nmanaged is foreign exchange risk. We use foreign currency contracts to reduce the risk that our cash flows, earnings, \nand investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We \nalso enter into derivative instruments to partially offset our exposure to other risks and enhance investment returns.\nWe recognize derivative instruments in the Consolidated Balance Sheets at fair value and classify the derivatives \nprimarily within Level 2 in the fair value hierarchy. We present our collar contracts (an option strategy comprised of a \ncombination of purchased and written options) at net fair values and present all other derivatives at gross fair values. \nThe accounting treatment for derivatives is based on the intended use and hedge designation.\nCash Flow Hedges\nWe designate foreign currency forward and option contracts (including collars) as cash flow hedges to hedge \ncertain forecasted revenue transactions denominated in currencies other than the U.S. dollar. These contracts have \nmaturities of 24 months  or less.\nCash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and \nsubsequently reclassified to revenue when the hedged item is recognized in earnings. We exclude forward points and \ntime value from our assessment of hedge effectiveness and amortize them on a straight-line basis over the life of the \nhedging instrument in revenues. The difference between fair value changes of the excluded component and the \namount amortized to revenues is recorded in AOCI.\nAs of December 31, 2023 , the net accumulated gain on our foreign currency cash flow hedges before tax effect \nwas $47 million , which is expected to be reclassified from AOCI into revenues within the next 12 months.\nFair Value Hedges\nWe designate foreign currency forward contracts as fair value hedges to hedge foreign currency risks for our \nmarketable securities denominated in currencies other than the U.S. dollar. Fair value hedge amounts included in the \nassessment of hedge effectiveness are recognized in OI&E, along with the offsetting gains and losses of the related \nhedged items. We exclude forward points from the assessment of hedge effectiveness and recognize changes in the \nexcluded component in OI&E.\nNet Investment Hedges\nWe designate foreign currency forward contracts as net investment hedges to hedge the foreign currency risks"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba4a8-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 68, "chroma:document": "related to our investment in foreign subsidiaries. Net investment hedge amounts included in the assessment of hedge \neffectiveness are recognized in AOCI along with the foreign currency translation adjustment. We exclude forward \npoints from the assessment of hedge effectiveness and recognize changes in the excluded component in OI&E.\nOther Derivatives\nWe enter into foreign currency forward and option contracts that are not designated as hedging instruments to \nhedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the \nfunctional currency of a subsidiary. Gains and losses on these derivatives that are not designated as accounting \nhedges are primarily recorded in OI&E along with the foreign currency gains and losses on monetary assets and \nliabilities.\nWe also use derivatives not designated as hedging instruments to manage risks relating to interest rates, \ncommodity prices, credit exposures, and to enhance investment returns.  From time to time, we enter into derivatives to \nhedge the market price risk on certain of our marketable equity securities. Gains and losses arising from other \nderivatives are primarily reflected within the \u201cother\u201d component of OI&E. See Note 7  for further details. Table of Contents Alphabet Inc.\n68."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba4f8-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 69, "chroma:document": "The gross notional amounts of outstanding derivative instruments were as follows (in millions):\nAs of December 31,\n2022 2023\nDerivatives designated as hedging instruments:\nForeign exchange contracts\nCash flow hedges  $ 15,972 $ 18,039 \nFair value hedges $ 2,117 $ 2,065 \nNet investment hedges $ 8,751 $ 9,472 \nDerivatives not designated as hedging instruments:\nForeign exchange contracts $ 34,979 $ 39,722 \nOther contracts $ 7,932 $ 10,818 \nThe fair values of outstanding derivative instruments were as follows (in millions):\n As of December 31, 2022 As of December 31, 2023\n Assets(1)Liabilities(2)Assets(1)Liabilities(2)\nDerivatives designated as hedging instruments:\n     Foreign exchange contracts $ 271 $ 556 $ 205 $ 242 \nDerivatives not designated as hedging \ninstruments:\n     Foreign exchange contracts  365  207  134  156 \n     Other contracts  40  47  114  47 \nTotal derivatives not designated as hedging \ninstruments  405  254  248  203 \nTotal $ 676 $ 810 $ 453 $ 445 \n(1) Derivative assets are recorded as other current and non-current assets in the Consolidated Balance Sheets.\n(2) Derivative liabilities are recorded as accrued expenses and other liabilities, current and non-current in the Consolidated \nBalance Sheets.\nThe gains (losses)  on derivatives in cash flow hedging and net investment hedging relationships recognized in \nother comprehensive income (OCI) are summarized below (in millions):\n Year Ended December 31,\n2021 2022 2023\nDerivatives in cash flow hedging relationship:\nForeign exchange contracts\nAmount included in the assessment of effectiveness $ 806 $ 1,699 $ 90 \nAmount excluded from the assessment of \neffectiveness  48  (188)  84 \nDerivatives in net investment hedging relationship:\nForeign exchange contracts\nAmount included in the assessment of effectiveness  754  608  (287)"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba552-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 69, "chroma:document": "Total $ 1,608 $ 2,119 $ (113) Table of Contents Alphabet Inc.\n69."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba5ac-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 70, "chroma:document": "The table below presents the gains (losses) of our derivatives on the Consolidated Statements of Income: (in \nmillions):\nYear Ended December 31,\n2021 2022 2023\nRevenuesOther \nincome \n(expense), \nnet RevenuesOther \nincome \n(expense), \nnet RevenuesOther \nincome \n(expense), \nnet\nTotal amounts in the Consolidated Statements of \nIncome $ 257,637 $ 12,020 $ 282,836 $ (3,514) $ 307,394 $ 1,424 \nEffect of cash flow hedges:\nForeign exchange contracts\nAmount reclassified from AOCI to income $ 165 $ 0 $ 2,046 $ 0 $ 213 $ 0 \nAmount excluded from the assessment of \neffectiveness (amortized)  (16)  0  (85)  0  24  0 \nEffect of fair value hedges:\nForeign exchange contracts\nHedged items  0  (95)  0  (162)  0  59 \nDerivatives designated as hedging \ninstruments  0  95  0  163  0  (59) \nAmount excluded from the assessment of \neffectiveness  0  8  0  16  0  15 \nEffect of net investment hedges:\nForeign exchange contracts\nAmount excluded from the assessment of \neffectiveness  0  82  0  171  0  187 \nEffect of non designated hedges:\nForeign exchange contracts  0  (860) 0 (395)  0  7 \nOther contracts  0  101  0  144  0  53 \nTotal gains (losses) $ 149 $ (669) $ 1,961 $ (63) $ 237 $ 262 \nOffsetting of Derivatives\nWe enter into master netting arrangements and collateral security arrangements to reduce credit risk. Cash \ncollateral received related to derivative instruments under our collateral security arrangements are included in other \ncurrent assets  with a corresponding liability . Cash and non-cash collateral pledged related to derivative instruments"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba624-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 70, "chroma:document": "under our collateral security arrangements are included in other current assets .Table of Contents Alphabet Inc.\n70."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba67e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 71, "chroma:document": "The gross amounts of derivative instruments subject to master netting arrangements with various \ncounterparties, and cash and non-cash collateral received and pledged under such agreements were as follows (in \nmillions):\nAs of December 31, 2022\nGross Amounts Not Offset in \nthe Consolidated Balance \nSheets, but Have Legal Rights \nto Offset\nGross \nAmounts \nRecognizedGross \nAmounts \nOffset in the \nConsolidated \nBalance \nSheetsNet Amounts  \nPresented in \nthe \nConsolidated \nBalance \nSheetsFinancial \nInstruments(1)Cash and \nNon-Cash \nCollateral \nReceived or \nPledged Net Amounts\nDerivatives assets $ 760 $ (84) $ 676 $ (463) $ (132) $ 81 \nDerivatives liabilities $ 894 $ (84) $ 810 $ (463) $ (28) $ 319 \nAs of December 31, 2023\nGross Amounts Not Offset in \nthe Consolidated Balance \nSheets, but Have Legal Rights \nto Offset\nGross \nAmounts\nRecognizedGross \nAmounts \nOffset in the \nConsolidated \nBalance \nSheetsNet Amounts \nPresented in \nthe \nConsolidated \nBalance \nSheetsFinancial \nInstruments(1)Cash and \nNon-Cash \nCollateral \nReceived or \nPledged Net Amounts\nDerivatives assets $ 535 $ (82) $ 453 $ (213) $ (75) $ 165 \nDerivatives liabilities $ 527 $ (82) $ 445 $ (213) $ (16) $ 216 \n(1) The balances as of December 31, 2022 and 2023 were related to derivatives allowed to be net settled in accordance with our \nmaster netting agreements.\nNote 4.        Leases  \nWe have entered into operating lease agreements primarily for data centers, land, and offices throughout the \nworld with lease periods expiring between 2024  and 2063 . \nComponents of operating lease expense were as follows (in millions):\nYear Ended December 31,"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba6d8-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 71, "chroma:document": "Year Ended December 31,\n2021 2022 2023\nOperating lease cost $ 2,699 $ 2,900 $ 3,362 \nVariable lease cost  726  838  1,182 \nTotal operating lease cost $ 3,425 $ 3,738 $ 4,544 \nSupplemental information related to operating leases was as follows (in millions):\nYear Ended December 31,\n2021 2022 2023\nCash payments for operating leases $ 2,489 $ 2,722 $ 3,173 \nNew operating lease assets obtained in exchange for \noperating lease liabilities $ 2,951 $ 4,383 $ 2,877 Table of Contents Alphabet Inc.\n71."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba728-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 72, "chroma:document": "As of December 31, 2023 , our operating leases had a weighted average remaining lease term of 8.1 years  and a \nweighted average discount rate of 3.1% . Future lease payments under operating leases as of December 31, 2023  \nwere as follows (in millions):\n2024 $ 3,179 \n2025  2,929 \n2026  2,450 \n2027  1,951 \n2028  1,488 \nThereafter  5,685 \nTotal future lease payments  17,682 \nLess imputed interest  (2,431) \nTotal lease liability balance $ 15,251 \nAs of December 31, 2023 , we have entered into leases that have not yet commenced with short-term and long-\nterm future lease payments of $657 million  and $3.3 billion  that are not yet recorded on our Consolidated Balance \nSheets. These leases will commence between 2024  and 2026  with non-cancelable lease terms betwee n one and 25 \nyears.\nNote 5.        Variable Interest Entities \nConsolidated Variable Interest Entities\nWe consolidate VIEs in which we hold a variable interest and are the primary beneficiary. The results of \noperations and financial position of these VIEs are included in our consolidated financial statements.  \n For certain consolidated VIEs, their assets are not available to us and their creditors do not have recourse to us. \nAs of December 31, 2022  and 2023 , assets that can only be used to settle obligations of these VIEs were $4.1 billion  \nand $4.9 billion , respectively, and the liabilities for which creditors only have recourse to the VIEs were $2.6 billion  and \n$2.5 billion , respectively.  We may continue to fund ongoing operations of certain VIEs that are included within Other \nBets.  \nTotal noncontrolling interests (NCI) in our consolidated subsidiaries were $3.8 billion  and $3.4 billion  as of \nDecember 31, 2022  and 2023 , respectively, of which $1.1 billion  is redeemable noncontrolling interest (RNCI) for both"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba782-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 72, "chroma:document": "periods. NCI and RNCI are included within additional paid-in capital. Net loss attributable to noncontrolling interests \nwas not material for an y period presented and is included within the \"other\" component of OI&E. See Note 7  for further \ndetails on OI&E.\nUnconsolidated Variable Interest Entities\nWe have investments in VIEs in which we are not the primary beneficiary. These VIEs include private companies \nthat are primarily early stage companies and certain renewable energy entities in which activities involve power \ngeneration using renewable sources.\nWe have determined that the governance structures of these entities do not allow us to direct the activities that \nwould significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of \noperations and financial position of these VIEs are not included in our consolidated financial statements. We account \nfor these investments primarily as non-marketable equity securities or equity method investments.\nThe maximum exposure of these unconsolidated VIEs is generally based on the current carrying value of the \ninvestments and any future funding commitments. The m aximum exposure  and carrying value of these unconsolidated \nVIEs were $2.8 billion  and $2.7 billion , respectively, as of December 31, 2022  and $5.7 billion  and $4.0 billion , \nrespectively, as of December 31, 2023 . The difference between the maximum exposure and the carrying value relates \nprimarily to future funding commitments.\nNote 6.       Debt  \nShort-Term Debt\nWe have a debt financing program of up to $10.0 billion  through the issuance of commercial paper. Net proceeds \nfrom this program are used for general corporate purposes. We had no commercial paper outstanding as of \nDecember 31, 2022  and 2023 . \nOur short-term debt balance also includes the current portion of certain long-term debt.Table of Contents Alphabet Inc.\n72."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba7d2-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 73, "chroma:document": "Long-Term Debt\nTotal outstanding debt is summarized below (in millions, except percentages):\nEffective \nInterest RateAs of December 31,\nMaturity Coupon Rate 2022 2023\nDebt\n2014-2020 Notes issuances 2024 - 2060 0.45%  - 3.38% 0.57%  - 3.38% $ 13,000 $ 13,000 \nFuture finance lease payments, net and \nother (1) 2,142  1,746 \n      Total debt  15,142  14,746 \nUnamortized discount and debt \nissuance costs  (143)  (130) \nLess: Current portion of long-term \nnotes(2) 0  (1,000) \nLess: Current portion of future finance \nlease payments, net and other current \ndebt(1)(2) (298)  (363) \n       Total long-term debt $ 14,701 $ 13,253 \n(1)Future finance lease payments are net of imputed interest.\n(2)Total current portion of long-term debt is included within other accrued expenses and current liabilities. See Note 7 for further \ndetails.\nThe notes in the table above are fixed-rate senior unsecured obligations and generally rank equally with each \nother. We may redeem the notes at any time in whole or in part at specified redemption prices. The effective interest \nrates are based on proceeds received with interest payable semi-annually.\nThe total estimated fair value of the outstanding notes was approximately $9.9 billion  and $10.3 billion  as of \nDecember 31, 2022  and December 31, 2023 , respectively. The fair value was determined based on observable market \nprices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value \nhierarchy.\nAs of December 31, 2023 , the aggregate future principal payments for long-term debt, including finance lease \nliabilities, for each of the next five years and thereafter were as follows (in millions):\n2024 $ 1,299 \n2025 1,163\n2026 2,165\n2027 1,143\n2028 132\nThereafter 8,960"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba82c-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 73, "chroma:document": "2028 132\nThereafter 8,960\nTotal $ 14,862 \nCredit Facility\nAs of December 31, 2023 , we had $10.0 billion  of revolving credit facilities, of which $4.0 billion  expires in April \n2024  and $6.0 billion  expires in April 2028 . The interest rates for all credit facilities are determined based on a formula \nusing certain market rates, as well as our progress toward the achievement of certain sustainability goals.  No amounts \nwere outstanding under the credit facilities as of December 31, 2022  and 2023 .\nNote 7.        Supplemental Financial Statement Information  \nAccounts Receivable\nThe allowance for credit losses on accounts receivable was $754 million  and $771 million  as of December 31, \n2022  and 2023 , respectively.Table of Contents Alphabet Inc.\n73."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba886-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 74, "chroma:document": "Property and Equipment, Net\nProperty and equipment, net, consisted of the following (in millions):\nAs of December 31,\n2022 2023\nLand and buildings $ 66,897 $ 74,083 \nInformation technology assets  66,267  80,594 \nConstruction in progress  27,657  35,229 \nLeasehold improvements  10,575  11,425 \nFurniture and fixtures  314  472 \nProperty and equipment, gross  171,710  201,803 \nLess: accumulated depreciation  (59,042)  (67,458) \nProperty and equipment, net $ 112,668 $ 134,345 \nOur technical infrastructure is comprised of information technology assets, including servers and networking \nequipment , and data center land and buildings.\nAccrued Expenses and Other Current Liabilities\nAccrued expenses and other current liabilities consisted of the following (in millions):\nAs of December 31,\n2022 2023\nEuropean Commission fines(1)$ 9,106 $ 9,525 \nAccrued purchases of property and equipment  3,019  4,679 \nAccrued customer liabilities  3,619  4,140 \nCurrent operating lease liabilities  2,477  2,791 \nIncome taxes payable, net  1,632  2,748 \nOther accrued expenses and current liabilities  18,013  22,285 \nAccrued expenses and other current liabilities $ 37,866 $ 46,168 \n(1) While each EC decision is under appeal, the fines are included in accrued expenses and other current liabilities on our \nConsolidated Balance Sheets, as we provided bank guarantees (in lieu of a cash payment) for the fines. Amounts include the \neffects of foreign exchange and interest. Se e Note 10  for further details .Table of Contents Alphabet Inc.\n74."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba8d6-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 75, "chroma:document": "Accumulated Other Comprehensive Income (Loss)\nComponents of AOCI, net of income tax, were as follows (in millions):\nForeign Currency \nTranslation \nAdjustmentsUnrealized Gains \n(Losses) on \nAvailable-for-Sale \nInvestmentsUnrealized \nGains (Losses) \non Cash Flow \nHedges Total\nBalance as of December 31, 2020 $ (864) $ 1,612 $ (115) $ 633 \nOther comprehensive income (loss) before \nreclassifications  (1,442)  (1,312)  668  (2,086) \nAmounts excluded from the assessment of \nhedge effectiveness recorded in AOCI  0  0  48  48 \nAmounts reclassified from AOCI  0  (64)  (154)  (218) \nOther comprehensive income (loss)  (1,442)  (1,376)  562  (2,256) \nBalance as of December 31, 2021  (2,306)  236  447  (1,623) \nOther comprehensive income (loss) before \nreclassifications  (1,836)  (4,720)  1,463  (5,093) \nAmounts excluded from the assessment of \nhedge effectiveness recorded in AOCI  0  0  (188)  (188) \nAmounts reclassified from AOCI  0  1,007  (1,706)  (699) \nOther comprehensive income (loss)  (1,836)  (3,713)  (431)  (5,980) \nBalance as of December 31, 2022  (4,142)  (3,477)  16  (7,603) \nOther comprehensive income (loss) before \nreclassifications  735  1,344  84  2,163 \nAmounts excluded from the assessment of \nhedge effectiveness recorded in AOCI  0  0  84  84 \nAmounts reclassified from AOCI  0  1,168  (214)  954"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba930-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 75, "chroma:document": "Other comprehensive income (loss)  735  2,512  (46)  3,201 \nBalance as of December 31, 2023 $ (3,407) $ (965) $ (30) $ (4,402) \nThe effects on net income of amounts reclassified from AOCI were as follows (in millions):\nGains (Losses) Reclassified from AOCI to the \nConsolidated Statements of Income\nYear Ended December 31,\n AOCI Components Location 2021 2022 2023\nUnrealized gains (losses) on available-for-sale investments\nOther income (expense), net $ 82 $ (1,291) $ (1,497) \nBenefit (provision) for income \ntaxes  (18)  284  329 \nNet of income tax  64  (1,007)  (1,168) \nUnrealized gains (losses) on cash flow hedges\nForeign exchange contracts Revenue  165  2,046  213 \nInterest rate contracts Other income (expense), net  6  6  6 \nBenefit (provision) for income \ntaxes  (17)  (346)  (5) \nNet of income tax  154  1,706  214 \nTotal amount reclassified, net of income tax $ 218 $ 699 $ (954) Table of Contents Alphabet Inc.\n75."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba980-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 76, "chroma:document": "Other Income (Expense), Net \nComponents of OI&E  were as follows (in millions): \n Year Ended December 31,\n 2021 2022 2023\nInterest income $ 1,499 $ 2,174 $ 3,865 \nInterest expense(1) (346)  (357)  (308) \nForeign currency exchange gain (loss), net  (240)  (654)  (1,238) \nGain (loss) on debt securities, net  (110)  (2,064)  (1,215) \nGain (loss) on equity securities, net  12,380  (3,455)  392 \nPerformance fees  (1,908)  798  257 \nIncome (loss) and impairment from equity method investments, net  334  (337)  (628) \nOther  411  381  299 \nOther income (expense), net $ 12,020 $ (3,514) $ 1,424 \n(1) Interest expense is net of interest capitalized of $163 million , $128 million , and $181 million  for the years ended December 31, \n2021 , 2022 , and 2023 , respectively.\nNote 8.        Workforce Reduction and Other Initiatives  \nWe have a company-wide effort underway to re-engineer our cost base. As part of this program, in January 2023, \nwe announced a reduction of our workforce. As a result, total employee severance and related charges recorded \nduring the year ended December 31, 2023 wer e $2.1 billion . Substantially all of the employees affected were no longer \nincluded in our headcount as of December 31, 2023.\nIn addition, we are taking actions to optimize our global office space.  As a result, exit charges recorded during the \nyear ended December 31, 2023 , were $1.8 billion  as reflected in the table below. In addition to these exit charges, for \nthe year ended December 31, 2023 , we incurred $269 million  in accelerated rent and accelerated depreciation, which \nare not included in the table below.\nSeverance and office space exit charges are included within our consolidated statements of income as follows (in"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8ba9da-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 76, "chroma:document": "millions):\nYear Ended December 31, 2023\nSeverance \nand Related (1)Office Space Total\nCost of revenues $ 479 $ 481 $ 960 \nResearch and development 848  870  1,718 \nSales and marketing 497  257  754 \nGeneral and administrative 264  237  501 \nTotal charges $ 2,088 $ 1,845 $ 3,933 \n(1)Severance includes amounts to be settled in cash, accounted for as one-time involuntary employee termination benefits, and \nSBC.\nFor segment reporting, the substantial majority  of these charges are included within Alphabet-level activities in our \nsegment results.\nFor the  year ended December 31, 2023 , changes in liabilities resulting from the severance charges and related \naccruals were as follows (in millions):\nSeverance and \nRelated\nBalance as of December 31, 2022 $ 0 \nCharges(1) 1,656 \nCash payments  (1,579) \nBalance as of December 31, 2023(2)$ 77 \n(1)Excludes non-cash SBC of $432 million .\n(2)Included in accrued compensation and benefits on the Consolidated Balance Sheets.Table of Contents Alphabet Inc.\n76."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8baa2a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 77, "chroma:document": "Note 9.        Goodwill\nChanges in the carrying amount of goodwill for the years ended December 31, 2022  and 2023  were as follows \n(in millions):\nGoogle \nServices Google Cloud Other Bets Total\nBalance as of December 31, 2021 $ 19,826 $ 2,337 $ 793 $ 22,956 \nAcquisitions  1,176  4,876  119  6,171 \nForeign currency translation and other adjustments  (155)  (8)  (4)  (167) \nBalance as of December 31, 2022  20,847  7,205  908  28,960 \nAcquisitions  240  3  0  243 \nForeign currency translation and other adjustments  31  (9)  (27)  (5) \nBalance as of December 31, 2023 $ 21,118 $ 7,199 $ 881 $ 29,198 \nNote 10.        Commitments and Contingencies  \nCommitments\nWe have content licensing agreements with future fixed or minimum guaranteed commitments of $10.6 billion  as \nof December 31, 2023 , of which the majority is paid over  seven years  ending in the first quarter of 2030.\nIndemnifications\nIn the normal course of business, including to facilitate transactions in our services and products and corporate \nactivities, we indemnify certain parties, including advertisers, Google Network partners, distribution partners, \ncustomers of Google Cloud offerings, lessors,  and service providers with respect to certain matters. We have agreed \nto defend and/or hold certain parties harmless against losses arising from a breach of representations or covenants, or \nout of intellectual property infringement or other claims made against certain parties. Several of these agreements limit \nthe time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered \ninto indemnification agreements with our officers and directors, and our bylaws contain similar indemnification \nobligations to our agents.\nIt is not possible to make a reasonable estimate of the maximum potential amount under these indemnification \nagreements due to the unique facts and circumstances involved in each particular agreement. Additionally, the"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8baa84-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 77, "chroma:document": "payments we have made under such agreements have not had a material adverse effect on our results of operations, \ncash flows, or financial position. However, to the extent that valid indemnification claims arise in the future, future \npayments by us could be significant and could have a material adverse effect on our results of operations or cash flows \nin a particular period. \nAs of December 31, 2023 , we did not have any material indemnification claims that were probable or reasonably \npossible.\nLegal Matters\nWe record a liability when we believe that it is probable that a loss has been incurred, and the amount can be \nreasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be \nestimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect \nthe amount of liability that has been previously accrued, and the matters and related reasonably possible losses \ndisclosed, and make adjustments as appropriate.\nCertain outstanding matters seek speculative, substantial or indeterminate monetary amounts, substantial \nchanges to our business practices and products, or structural remedies. Significant judgment is required to determine \nboth the likelihood of there being a loss and the estimated amount of a loss related to such matters, and we may be \nunable to estimate the reasonably possible loss or range of losses. The outcomes of outstanding legal matters are \ninherently unpredictable and subject to significant uncertainties, and could, either individually or in aggregate, have a \nmaterial adverse effect.\nWe expense legal fees in the period in which they are incurred.Table of Contents Alphabet Inc.\n77."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bab06-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 78, "chroma:document": "Antitrust Investigations\nOn November 30, 2010, the EC's Directorate General for Competition opened an investigation into various \nantitrust-related complaints against us.\nOn June 27, 2017, the EC announced its decision that certain actions taken by Google regarding its display and \nranking of shopping search results and ads infringed European competition law. The EC decision imposed a \u20ac2.4 \nbillion  ($2.7 billion  as of June 27, 2017 ) fine. On September 11, 2017, we appealed the EC decision to the General \nCourt, and on September 27, 2017, we implemented product changes to bring shopping ads into compliance with the \nEC's decision. We recognized a charge of $2.7 billion  for the fine in the second quarter of 2017. On November 10, \n2021, the General Court rejected our appeal, and we subsequently filed an appeal with the European Court of Justice \non January 20, 2022.\nOn July 18, 2018, the EC announced its decision that certain provisions in Google\u2019s Android-related distribution \nagreements infringed European competition law. The EC decision imposed a \u20ac4.3 billion  ($5.1 billion  as of June 30, \n2018 ) fine and directed the termination of the conduct at issue. On October 9, 2018, we appealed the EC decision, and \non October 29, 2018, we implemented changes to certain of our Android distribution practices. On September 14, \n2022, the General Court reduced the fine from \u20ac4.3 billion  to \u20ac4.1 billion . We subsequently filed an appeal with the \nEuropean Court of Justice. In 2018, we recognized a charge of $5.1 billion  for the fine, which we reduced by \n$217 million  in 2022.\nOn March 20, 2019, the EC announced its decision that certain contractual provisions in agreements that Google \nhad with AdSense for Search partners infringed European competition law. The EC decision imposed a fine of \u20ac1.5 \nbillion  ($1.7 billion  as of March 20, 2019 ) and directed actions related to AdSense for Search partners' agreements,"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bab6a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 78, "chroma:document": "which we implemented prior to the decision. On June 4, 2019, we appealed the EC decision. We recognized a charge \nof $1.7 billion  for the fine in the first quarter of 2019.\nFrom time to time we are subject to formal and informal inquiries and investigations on various competition \nmatters by regulatory authorities in the U.S., Europe, and other jurisdictions globally. Examples, for which given their \nnature we cannot estimate a possible loss, include:\n\u2022In August 2019, we began receiving civil investigative demands from the U.S. Department of Justice (DOJ) \nrequesting information and documents relating to our prior antitrust investigations and certain aspects of our \nbusiness. The DOJ and a number of state Attorneys General filed a lawsuit in the U.S. District Court for the \nDistrict of Columbia on October 20, 2020 alleging that Google violated U.S. antitrust laws relating to Search \nand Search advertising. The trial ended on November 16, 2023, and we expect a decision in 2024. Further, in \nJune 2022, the Australian Competition and Consumer Commission (ACCC) and the United Kingdom's \nCompetition and Markets Authority (CMA) each opened an investigation into Search distribution practices.\n\u2022On December 16, 2020, a number of state Attorneys General filed an antitrust complaint in the U.S. District \nCourt for the Eastern District of Texas, alleging that Google violated U.S. antitrust laws as well as state \ndeceptive trade laws relating to its advertising technology , and a trial is scheduled for March 2025.  Additionally, \non January 24, 2023, the DOJ, along with a number of state Attorneys General, filed an antitrust complaint in \nthe U.S. District Court for the Eastern District of Virginia alleging that Google\u2019s digital advertising technology \nproducts violate U.S. antitrust laws, and on April 17, 2023, a number of additional state Attorneys General \njoined the complaint. The EC, the CMA, and the ACCC each opened a formal investigation into Google's \nadvertising technology business practices on June 22, 2021, May 25, 2022, and June 29, 2022, respectively."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8babc4-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 78, "chroma:document": "On June 14, 2023, the EC issued a Statement of Objections (SO) informing Google of its preliminary view that \nGoogle violated European antitrust laws relating to its advertising technology. We responded to the SO on \nDecember 1, 2023.\n\u2022On July 7, 2021, a number of state Attorneys General filed an antitrust complaint in the U.S. District Court for \nthe Northern District of California, alleging that Google\u2019s operation of Android and Google Pla y violated U.S. \nantitrust laws and state antitrust and consumer protection laws. In September 2023, we reached a settlement \nin principle with 50 state Attorneys General and three territories. The U.S. District Court subsequently vacated \nthe trial date with the states, and any final approval of the settlement is expected to occur in 2024. In May \n2022, the EC and the CMA each opened investigations into Google Play\u2019s business practices. Korean \nregulators are investigating Google Play's billing practices, including a formal review in May 2022 of Google's \ncompliance with the new app store billing regulations. \nWe believe we have strong arguments against these claims and will defend ourselves vigorously . We continue to \ncooperate with federal and state regulators in the U.S., the EC, and other regulators around the world.Table of Contents Alphabet Inc.\n78."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bac1e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 79, "chroma:document": "Privacy Matters \nWe are subject to a number of privacy-related laws and regulations, and we currently are party to  a number of \nprivacy investigations and lawsuits ongoing in multiple jurisdictions. For example, there are ongoing investigations and \nlitigation in the U.S. and the EU, including those relating to our collection and use of location information and \nadvertising practices, which could result in significant fines, judgments, and product changes. \nPatent and Intellectual Property Claims\nWe have had patent, copyright, trade secret, and trademark infringement  lawsuits filed against us claiming that \ncertain of our products, services, and technologies infringe others' intellectual property rights. Adverse results in these \nlawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders \npreventing us from offering certain features, functionalities, products, or services. As a result, we may have to change \nour business practices and develop non-infringing products or technologies, which could result in a loss of revenues for \nus and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly \nbecome an important forum to litigate intellectual property disputes because an ultimate loss in an ITC action can \nresult in a prohibition on importing infringing products into the U.S. Because the U.S. is an important market, a \nprohibition on importation could have an adverse effect on us, including preventing us from importing many important \nproducts into the U.S. or necessitating workarounds that may limit certain features of our products.\nFurthermore, many of our agreements with our customers and partners require us to indemnify them against \ncertain intellectual property infringement claims, which would increase our costs as a result of defending such claims, \nand may require that we pay significant damages if there were an adverse ruling in any such claims. In addition, our \ncustomers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions \nor otherwise, which could result in loss of revenues and adversely affect our business.\nOther\nWe are subject to claims, lawsuits, regulatory and government investigations, other proceedings, and consent \norders involving competition, intellectual property, data security, tax and related compliance, labor and employment, \ncommercial disputes, content generated by our users, goods and services offered by advertisers or publishers using"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bacaa-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 79, "chroma:document": "our platforms, personal injury, consumer protection, and other matters.  For example, in December 2023, a California \njury delivered a verdict in  Epic Games v. Google  finding that Google violated antitrust laws related to Google Play's \nbusiness. The pr esiding judge will determine remedies in 2024, and the range of potential remedies vary widely. We \nplan to appeal.  We also periodically have data incidents that we report to relevant regulators as required by law.  \nThese  claims , consent orders, lawsuits, regulatory and government investigations, and other proceedings could \nresult in substantial fines and penalties, injunctive relief, ongoing monitoring and auditing obligations, changes to our \nproducts and services, alterations to our business models and operations, and collateral related civil litigation or other \nadverse consequences,  all of which could harm our business, reputation, financial condition, and operating results.\nWe have ongoing legal matters relating to Russia. For example, civil judgments that include compounding \npenalties have been imposed upon us in connection with disputes regarding the termination of accounts, including \nthose of sanctioned parties. We do not believe these ongoing legal matters will have a material adverse effect .\nNon-Income Taxes\nWe are under audit by various domestic and foreign tax authorities with regards to non-income tax matters. The \nsubject matter of non-income tax audits primarily arises from disputes on the tax treatment and tax rate applied to the \nsale of our products and services in these jurisdictions and the tax treatment of certain employee benefits. We accrue \nnon-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when \na loss is probable and reasonably estimable. If we determine that a loss is reasonably possible and the loss or range of \nloss can be estimated, we disclose the reasonably possible loss. Due to the inherent complexity and uncertainty of \nthese matters and judicial process in certain jurisdictions, the final outcome may be materially different from our \nexpectations.\nSee, Note 14  for information regarding income tax contingencies.Table of Contents Alphabet Inc.\n79."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bacfa-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 80, "chroma:document": "Note 11.        Stockholders' Equity  \nClass A and Class B Common Stock and Class C Capital Stock\nOur Board of Directors has authorized three  classes of stock, Class A and Class B common stock, and Class C \ncapital stock. The rights of the holders of each class of our common and capital stock are identical, except with respect \nto voting. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock \nis entitled to 10 votes per share. Class C capital stock has no voting rights, except as required by applicable law. \nShares of Class B common stock may be converted at any time at the option of the stockholder and automatically \nconvert upon sale or transfer to Class A common stock.\nShare Repurchases\nIn the years ended December 31, 2021 , 2022 , and 2023 , we repurchased  $50.3 billion , $59.3 billion , and \n$62.2 billion , respectively, of Alphabet's Class A and Class C shares.\nIn April 2023, the Board of Directors of Alphabet authorized the company to repurchase up to an additional \n$70.0 billion  of its Class A and Class C shares. As of December 31, 2023 , $36.3 billion  remains available for Class A \nand Class C share repurchases. \nThe following table presents Class A and Class C shares repurchased and subsequently retired (in millions):\nYear Ended December 31, 2022 Year Ended December 31, 2023\nShares Amount Shares Amount\nClass A share repurchases 61$ 6,719 78$ 9,316 \nClass C share repurchases 469  52,577 450  52,868 \nTotal share repurchases(1)530 $ 59,296 528 $ 62,184 \n(1)         Shares repurchased include unsettled repurchases as of December 31, 2023 .\nClass A and Class C shares are repurchased in a manner deemed in the best interest of the company and its \nstockholders, taking into account the economic cost and prevailing market conditions, including the relative trading \nprices and volumes of the Class A and Class C shares. Repurchases are executed from time to time, subject to"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bad54-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 80, "chroma:document": "general business and market conditions and other investment opportunities, through open market purchases or \nprivately negotiated transactions, including through Rule 10b5-1 plans. The repurchase program does not have an \nexpiration date.\nNote 12.        Net Income Per Share  \nWe compute net income per share of Class A, Class B, and Class C stock using the two-class method. Basic net \nincome per share is computed using the weighted-average number of shares outstanding during the period. Diluted net \nincome per share is computed using the weighted-average number of shares and the effect of potentially dilutive \nsecurities outstanding during the period. Potentially dilutive securities consist of RSUs and other contingently issuable \nshares. The dilutive effect of outstanding RSUs and other contingently issuable shares is reflected in diluted earnings \nper share by application of the treasury stock method. The computation of the diluted net income per share of Class A \nstock assumes the conversion of Class B stock, while the diluted net income per share of Class B stock does not \nassume the conversion of those shares.\nThe rights, including the liquidation and dividend rights, of the holders of our Class A, Class B, and Class C stock \nare identical, except with respect to voting. Furthermore, there are a number of safeguards built into our certificate of \nincorporation, as well as Delaware law, which preclude our Board of Directors from declaring or paying unequal per \nshare dividends on our Class A, Class B, and Class C stock. Specifically, Delaware law provides that amendments to \nour certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a \ngiven class of stock must be approved by the class of stock adversely affected by the proposed amendment. In \naddition, our certificate of incorporation provides that before any such amendment may be put to a stockholder vote, it \nmust be approved by the unanimous consent of our Board of Directors. As a result, the undistributed earnings for each \nyear are allocated based on the contractual participation rights of the Class A, Class B, and Class C stock as if the \nearnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed \nearnings are allocated on a proportionate basis."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8badae-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 80, "chroma:document": "earnings are allocated on a proportionate basis. \nIn the years ended December 31, 2021 , 2022 , and 2023 , the net income per share amounts are the same for \nClass A, Class B, and Class C stock because the holders of each class are entitled to equal per share dividends or \ndistributions in liquidation in accordance with the Amended and Restated Certificate of Incorporation of Alphabet Inc.Table of Contents Alphabet Inc.\n80."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bae08-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 81, "chroma:document": "The following table  sets forth the computation of basic and diluted net income per share of Class A, Class B, and \nClass C stock (in millions, except per share amounts):\n Year Ended December 31,\n 2021\n Class A Class B Class C\nBasic net income per share:\nNumerator\nAllocation of undistributed earnings $ 34,200 $ 5,174 $ 36,659 \nDenominator\nNumber of shares used in per share computation  6,006  909  6,438 \nBasic net income per share $ 5.69 $ 5.69 $ 5.69 \nDiluted net income per share:\nNumerator\nAllocation of undistributed earnings for basic computation $ 34,200 $ 5,174 $ 36,659 \nReallocation of undistributed earnings as a result of conversion of Class B to Class A \nshares  5,174  0  0 \nReallocation of undistributed earnings  (581)  (77)  581 \nAllocation of undistributed earnings $ 38,793 $ 5,097 $ 37,240 \nDenominator\nNumber of shares used in basic computation  6,006  909  6,438 \nWeighted-average effect of dilutive securities\nAdd:\nConversion of Class B to Class A shares outstanding  909  0  0 \nRestricted stock units and other contingently issuable shares  0  0  200 \nNumber of shares used in per share computation  6,915  909  6,638 \nDiluted net income per share $ 5.61 $ 5.61 $ 5.61 \n Year Ended December 31,\n 2022\n Class A Class B Class C\nBasic net income per share:\nNumerator\nAllocation of undistributed earnings $ 27,518 $ 4,072 $ 28,382 \nDenominator\nNumber of shares used in per share computation  5,994  887  6,182 \nBasic net income per share $ 4.59 $ 4.59 $ 4.59 \nDiluted net income per share:\nNumerator\nAllocation of undistributed earnings for basic computation $ 27,518 $ 4,072 $ 28,382"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bae62-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 81, "chroma:document": "Reallocation of undistributed earnings as a result of conversion of Class B to Class A \nshares  4,072  0  0 \nReallocation of undistributed earnings  (230)  (30)  230 \nAllocation of undistributed earnings $ 31,360 $ 4,042 $ 28,612 \nDenominator\nNumber of shares used in basic computation  5,994  887  6,182 \nWeighted-average effect of dilutive securities\nAdd:\nConversion of Class B to Class A shares outstanding  887  0  0 \nRestricted stock units and other contingently issuable shares  0  0  96 \nNumber of shares used in per share computation  6,881  887  6,278 \nDiluted net income per share $ 4.56 $ 4.56 $ 4.56 Table of Contents Alphabet Inc.\n81."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8baeb2-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 82, "chroma:document": "Year Ended December 31,\n 2023\n Class A Class B Class C\nBasic net income per share:\nNumerator\nAllocation of undistributed earnings $ 34,601 $ 5,124 $ 34,070 \nDenominator\nNumber of shares used in per share computation  5,922  877  5,831 \nBasic net income per share $ 5.84 $ 5.84 $ 5.84 \nDiluted net income per share:\nNumerator\nAllocation of undistributed earnings for basic computation $ 34,601 $ 5,124 $ 34,070 \nReallocation of undistributed earnings as a result of conversion of Class B to Class A \nshares  5,124  0  0 \nReallocation of undistributed earnings  (287)  (37)  287 \nAllocation of undistributed earnings $ 39,438 $ 5,087 $ 34,357 \nDenominator\nNumber of shares used in basic computation  5,922  877  5,831 \nWeighted-average effect of dilutive securities\nAdd:\nConversion of Class B to Class A shares outstanding  877  0  0 \nRestricted stock units and other contingently issuable shares  0  0  92 \nNumber of shares used in per share computation  6,799  877  5,923 \nDiluted net income per share $ 5.80 $ 5.80 $ 5.80 \nNote 13.        Compensation Plans  \nStock Plans\nOur stock plans include the Alphabet Amended and Restated 2021 Stock Plan (\"Alphabet 2021 Stock Plan\") and \nOther Bet s stock-based plans. Under our stock plans, RSUs and other types of awards may be granted. Under the \nAlphabet 2021 Stock Plan, an RSU award is an agreement to issue shares of our Class C stock at the time the award \nvests. RSUs generally vest over four years  contingent upon employment on the vesting date.\nAs of December 31, 2023 , there were 723 million  shares of Class C stock reserved for future issuance under the \nAlphabet 2021 Stock Plan.\nStock-Based Compensation"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8baf0c-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 82, "chroma:document": "Alphabet 2021 Stock Plan.\nStock-Based Compensation\nFor the years ended December 31, 2021 , 2022 , and 2023 , total SBC expense was $15.7 billion , $19.5 billion , and \n$22.1 billion , including amounts associated with awards we expect to settle in Alphabet stock of $15.0 billion , $18.8 \nbillion , and $21.7 billion , respectively.\nDuring the year ended December 31, 2023 , total SBC expense includes $432 million  associated with workforce \nreduction costs. See Note 8  for further details.\nFor the years ended December 31, 2021 , 2022 , and 2023 , we recognized tax benefits on total SBC expense, \nwhich are reflected in the provision for income taxes in the Consolidated Statements of Income, of $3.1 billion , $3.9 \nbillion , and $4.5 billion , respectively.\nFor the years ended December 31, 2021 , 2022 , and 2023 , tax benefit realized related to awards vested or \nexercised during the period was $5.9 billion , $4.7 billion , and $5.6 billion , respectively. These amounts do not include \nthe indirect effects of stock-based awards, which primarily relate to the R&D tax credit.\nStock-Based Award ActivitiesTable of Contents Alphabet Inc.\n82."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8baf5c-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 83, "chroma:document": "The following table summarizes the activities for  unvested Alphabet RSUs  for the year ended December 31, 2023  \n(in millions, except per share amounts):\nUnvested Restricted Stock Units\n     Number of    \nSharesWeighted-\nAverage\nGrant-Date\nFair Value\nUnvested as of December 31, 2022  324 $ 107.98 \nGranted  263 $ 97.59 \nVested  (217) $ 100.36 \nForfeited/canceled  (32) $ 106.56 \nUnvested as of December 31, 2023  338 $ 104.93 \nThe weighted-average grant-date fair value of RSUs granted during the years ended December 31,  2021  and \n2022  was $97.46  and $127.22 , respectively. Total fair value of RSUs, as of their respective vesting dates, during the \nyears ended December 31, 2021 , 2022 , and 2023 , were $28.8 billion , $23.9 billion , and $26.6 billion , respectively.\nAs of December 31, 2023 , there was $33.5 billion  of unrecognized compensation cost related to unvested RSUs. \nThis amount is expected to be recognized over a weighted-average period of 2.5 years . \nNote 14.        Income Taxes  \nIncome from continuing operations before income taxes consisted of the following (in millions):\nYear Ended December 31,\n 2021 2022 2023\nDomestic operations $ 77,016 $ 61,307 $ 73,600 \nForeign operations  13,718  10,021  12,117 \nTotal $ 90,734 $ 71,328 $ 85,717 \nProvision for income taxes consisted of the following (in millions):\nYear Ended December 31,\n 2021 2022 2023\nCurrent:\nFederal and state $ 10,126 $ 17,120 $ 17,125 \nForeign  2,692  2,434  2,526 \nTotal  12,818  19,554  19,651 \nDeferred:"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bafb6-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 83, "chroma:document": "Deferred:\nFederal and state  2,018  (8,052)  (7,482) \nForeign  (135)  (146)  (247) \nTotal  1,883  (8,198)  (7,729) \nProvision for income taxes $ 14,701 $ 11,356 $ 11,922 Table of Contents Alphabet Inc.\n83."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb006-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 84, "chroma:document": "The reconciliation of federal statutory income tax rate to our effective income tax rate was as follows:\nYear Ended December 31,\n 2021 2022 2023\nU.S. federal statutory tax rate  21.0 %  21.0 %  21.0 %\nForeign income taxed at different rates  0.2  3.0  0.3 \nForeign-derived intangible income deduction  (2.5)  (5.4)  (4.6) \nStock-based compensation expense  (2.5)  (1.2)  (0.8) \nFederal research credit  (1.6)  (2.2)  (1.8) \nDeferred tax asset valuation allowance  0.6  0.9  0.6 \nState and local income taxes  1.0  0.8  1.0 \nEffect of tax law change  0.0  0.0  (1.4) \nOther  0.0  (1.0)  (0.4) \nEffective tax rate  16.2 %  15.9 %  13.9 %\nIn 2022, there was an increase in the U.S. Foreign Derived Intangible Income tax deduction from the effects of \ncapitalization and amortization of R&D expenses starting in 2022 as required by the 2017 Tax Cuts and Jobs Act.\nIn 2023, the  IRS issued a rule change allowing taxpayers to temporarily apply the regulations in effect prior to \n2022 related to U.S. federal foreign tax credits as well as a separate rule change with interim guidance on the \ncapitalization and amortization of R&D expenses. A cumulative one-time adjustment applicable to the prior period for \nthese tax rule changes was recorded in 2023.\nDeferred Income Taxes\nDeferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets \nand liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components \nof our deferred tax assets and liabilities were as follows (in millions):\nAs of December 31,\n2022 2023\nDeferred tax assets:\nAccrued employee benefits $ 955 $ 1,855"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb060-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 84, "chroma:document": "Accrued employee benefits $ 955 $ 1,855 \nAccruals and reserves not currently deductible  1,956  2,481 \nTax credits  6,002  6,609 \nNet operating losses  2,557  2,965 \nOperating leases  2,711  3,526 \nCapitalized research and development(1) 10,381  17,757 \nOther  2,289  1,951 \nTotal deferred tax assets  26,851  37,144 \nValuation allowance  (9,553)  (10,999) \nTotal deferred tax assets net of valuation allowance  17,298  26,145 \nDeferred tax liabilities:\nProperty and equipment, net  (6,607)  (8,189) \nNet investment gains  (2,361)  (2,405) \nOperating leases  (2,491)  (2,965) \nOther  (1,092)  (902) \nTotal deferred tax liabilities  (12,551)  (14,461) \nNet deferred tax assets (liabilities) $ 4,747 $ 11,684 \n(1)As required by the 2017 Tax Cuts and Jobs Act, effective January 1, 2022, our research and development expenditures were \ncapitalized and amortized which resulted in substantially higher cash taxes starting in 2022 with an equal amount of deferred \ntax benefit.  \nAs of December 31, 2023 , our federal, state, and foreign net operating loss carryforwards for income tax \npurposes were approximately $7.1 billion , $18.6 billion , and $1.8 billion  respectively. If not utilized, the federal net Table of Contents Alphabet Inc.\n84."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb0ba-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 85, "chroma:document": "operating loss carryforwards will begin to expire in 202 4, foreign net operating loss carryforwards will begin to expire in \n2025 and the state net operating loss carryforwards will begin to expire in 2029. It is more likely than not that the \nmajority of the net operating loss carryforwards will not be realized; therefore, we have recorded a valuation allowance \nagainst them. The net operating loss carryforwards are subject to various annual limitations under the tax laws of the \ndifferent jurisdictions.\nAs of December 31, 2023 , our Federal and California research and development credit carryforwards for income \ntax purposes were approximately $600 million  and $6.3 billion , respectively. If not utilized, the Federal R&D credit will \nbegin to expire in 2037 and the California R&D credit can be carried over indefinitely. We believe the majority of the \nfederal tax credit and state tax credit is not likely to be realized.\nAs of December 31, 2023 , our investment tax credit carryforwards for state income tax purposes were \napproximately $1.0 billion  and will begin to expire in 2029. We use the flow-through method of accounting for \ninvestment tax credits. We believe this tax credit is not likely to be realized.\nAs of December 31, 2023 , we maintained a valuation allowance with respect to California deferred tax assets, \ncertain federal net operating losses, certain state net operating losses and tax credits, net deferred tax assets relating \nto Other Bet companies, and certain foreign net operating losses that we believe are not likely to be realized. We \ncontinue to reassess the remaining valuation allowance quarterly, and if future evidence allows for a partial or full \nrelease of the valuation allowance, a tax benefit will be recorded accordingly. \nUncertain Tax Positions\nThe following table summarizes the activity related to our gross unrecognized tax benefits (in millions):\n 2021 2022 2023\nBeginning gross unrecognized tax benefits $ 3,837 $ 5,158 $ 7,055 \nIncreases related to prior year tax positions  529  253  740 \nDecreases related to prior year tax positions  (263)  (437)  (682) \nDecreases related to settlement with tax authorities  (329)  (140)  (21)"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb11e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 85, "chroma:document": "Increases related to current year tax positions  1,384  2,221  2,346 \nEnding gross unrecognized tax benefits $ 5,158 $ 7,055 $ 9,438 Year Ended December 31,\nWe are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating \nour uncertain tax positions and determining our provision for income taxes. The total amount of gross unrecognized tax \nbenefits was $5.2 billion , $7.1 billion , and $9.4 billion  as of December 31, 2021 , 2022 , and 2023 , respectively, of which \n$3.7 billion , $5.3 billion , and $7.4 billion , if recognized, would affect our effective tax rate, respectively. \nAs of December 31, 2022  and 2023 , we accrued $346 million  and $622 million  in interest and penalties in \nprovision for income taxes, respectively.\nWe file income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. Our two \nmajor tax jurisdictions are the U.S. federal and Ireland. We are subject to the continuous examination of our income tax \nreturns by the IRS and other tax authorities. The IRS is currently examining our 2016 through 2021 tax returns. We \nhave also received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or \npermanent establishment. We continue to defend such claims as presented.\nThe tax years 2016 through 2022 remain subject to examination by the appropriate governmental agencies for \nIrish tax purposes. There are other ongoing audits in various other jurisdictions that are not material to our financial \nstatements.\nWe regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the \nadequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax \nauthorities and the effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.\nWe believe that an adequate provision has been made for any adjustments that may result from tax examinations. \nHowever, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are \nresolved in a manner not consistent with management's expectations, we could be required to adjust our provision for"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb16e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 85, "chroma:document": "income taxes in the period such resolutions occur. Although the timing of resolution, settlement, and closure of audits is \nnot certain, it is reasonably possible that our unrecognized tax benefits from certain U.S. federal, state, and non U.S. \ntax positions could decrease by approximately $700 million  in the next 12 months. Positions that may be resolved \ninclude various U.S. and non-U.S. matters.Table of Contents Alphabet Inc.\n85."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb1f0-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 86, "chroma:document": "Note 15.        Information about Segments and Geographic Areas  \nWe report our segment results as Google Services, Google Cloud, and Other Bets:\n\u2022Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, \nGoogle Play, Search, and YouTube. Google Services generates revenues primarily from advertising;  fees \nreceived for consumer subscription-based products such as YouTube TV,  YouTube Music and Premium , and \nNFL Sunday Ticket; the sale of apps and in-app purchases and devices.\n\u2022Google Cloud includes infrastructure and platform services, collaboration tools, and other services for \nenterprise customers. Google Cloud generates revenues primarily from consumption-based fees and \nsubscriptions received for Google Cloud Platform services, Google Workspace communication and \ncollaboration tools, and other enterprise services.\n\u2022Other Bets is a combination of multiple operating segments that are not individually material. Revenues from \nOther Bets are generated primarily from the sale of health care-related services and internet services.\nRevenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering \nactivities, and devices, as well as certain operating expenses are directly attributable to our segments. Due to the \nintegrated nature of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are \nmanaged centrally at a consolidated level. These costs, including the associated depreciation and impairment, are \nallocated to operating segments as a service cost generally based on usage, headcount, or revenue.\nReflecting DeepMind's increasing collaboration with Google Services, Google Cloud, and Other Bets, beginning in \nthe first quarter of 2023 DeepMind is reported as part of Alphabet-level activities instead of within Other Bets. \nAdditionally, beginning in the first quarter of 2023, we updated and simplified our cost allocation methodologies to \nprovide our business leaders with increased transparency for decision-making. Prior periods have been recast to \nconform to the current presentation.\nAs announced on April 20, 2023, we brought together part of Google Research (the Brain team) and DeepMind to \nsignificantly accelerate our progress in artificial intelligence (AI). The group, called Google DeepMind, is reported within \nAlphabet-level activities prospectively beginning in the second quarter of 2023. Previously, the Brain team was \nincluded within Google Services."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb24a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 86, "chroma:document": "included within Google Services.\nCertain costs are not allocated to our segments because they represent Alphabet-level activitie s. These costs \nprimarily include AI-focused shared  R&D activities, including development costs of our general AI models ; corporate \ninitiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and \nlegal costs, including certain fines and settlements. Charges associated with reductions in our workforce and office \nspace during 2023 were not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not \nallocated to our segments.\nOur operating segments are not evaluated using asset information.\nThe following table presents information about our segments (in millions) :\nYear Ended December 31,\n2021 2022 2023\nRevenues:\nGoogle Services $ 237,529 $ 253,528 $ 272,543 \nGoogle Cloud  19,206  26,280  33,088 \nOther Bets  753  1,068  1,527 \nHedging gains (losses)  149  1,960  236 \nTotal revenues $ 257,637 $ 282,836 $ 307,394 \nOperating income (loss):\nGoogle Services $ 88,132 $ 82,699 $ 95,858 \nGoogle Cloud  (2,282)  (1,922)  1,716 \nOther Bets  (4,051)  (4,636)  (4,095) \nAlphabet-level activities  (3,085)  (1,299)  (9,186) \nTotal income from operations $ 78,714 $ 74,842 $ 84,293 \nSee Note 2  for information relating to revenues by geography.Table of Contents Alphabet Inc.\n86."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb29a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 87, "chroma:document": "The following table presents long-lived assets by geographic area, which includes property and equipment, net \nand operating lease assets (in millions):\nAs of December 31,\n 2022 2023\nLong-lived assets:\nUnited States $ 93,565 $ 110,053 \nInternational  33,484  38,383 \nTotal long-lived assets $ 127,049 $ 148,436 Table of Contents Alphabet Inc.\n87."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb2f4-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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{"source": "dataset/google-10-k-2023.pdf", "page": 88, "chroma:document": "ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL \nDISCLOSURE\nNone.\nITEM 9A. CONTROLS AND PROCEDURES\nEvaluation of Disclosure Controls and Procedures\nOur management, with the participation of our chief executive officer and chief financial officer, evaluated the \neffectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the \nend of the period covered by this Annual Report on Form 10-K.\nBased on this evaluation, our chief executive officer and chief financial officer concluded that, as of December 31, \n2023 , our disclosure controls and procedures are designed at a reasonable assurance level and are effective to \nprovide reasonable assurance that information we are required to disclose in reports that we file or submit under the \nExchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC\u2019s rules \nand forms, and that such information is accumulated and communicated to our management, including our chief \nexecutive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.\nChanges in Internal Control over Financial Reporting\nThere have been no changes in our internal control over financial reporting that occurred during the quarter \nended December 31, 2023  that have materially affected, or are reasonably likely to materially affect, our internal \ncontrol over financial reporting. \nManagement\u2019s Report on Internal Control over Financial Reporting\nOur management is responsible for establishing and maintaining adequate internal control over financial \nreporting, as defined in Rule 13a-15(f) of the Exchange Act. Our management conducted an evaluation of the \neffectiveness of our internal control over financial reporting based on the framework in Internal Control\u2014Integrated \nFramework  issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). \nBased on this evaluation, management concluded that our internal control over financial reporting was effective as of \nDecember 31, 2023 . Management reviewed the results of its assessment with our Audit and Compliance Committee. \nThe effectiveness of our internal control over financial reporting as of December 31, 2023  has been audited by Ernst & \nYoung LLP , an independent registered public accounting firm, as stated in its report which is included in Item 8 of this \nAnnual Report on Form 10-K."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb344-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 88, "chroma:document": "Annual Report on Form 10-K.\nLimitations on Effectiveness of Controls and Procedures\nIn designing and evaluating the disclosure controls and procedures, management recognizes that any controls \nand procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the \ndesired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there \nare resource constraints and that management is required to apply its judgment in evaluating the benefits of possible \ncontrols and procedures relative to their costs.Table of Contents Alphabet Inc.\n88."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb39e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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{"source": "dataset/google-10-k-2023.pdf", "page": 89, "chroma:document": "ITEM 9B. OTHER INFORMATION\n10b5-1 Trading Plans\nDuring the fiscal quarter ended December 31, 2023 , the following Section 16 officer and directors adopted, \nmodified or terminated  a \u201cRule 10b5-1 trading arrangement\u201d (as defined in Item 408 of Regulation S-K of the Exchange \nAct):\n\u2022John Hennessy , Chair of t he Board of Directors , through the John L. Hennessy & Andrea J. Hennessy \nRevocable Trust, adopted  a new trading plan on November 1, 2023  (with the first trade under the new plan \nscheduled for February 12, 2024). The trading plan will be effective until March 12, 2025 to sell 6,664  shares of \nClass C Capital Stock and 11,336  shares of Class A Common Stock.\n\u2022Ann Mather , former member of the Board of Directors , terminated  her trading plan on October 30, 2023 , \neffective with her resignation from the Board of Directors. The trading plan previously permitted the sale of \n12,580  shares of Class C Capital Stock and would have been effective until June 2, 2024.\n\u2022Ruth M. Porat , President and Chief Investment Officer; Chief Financial Officer , adopted  a new trading plan on \nNovember 30, 2023  (with the first trade under the new plan scheduled for March 8, 2024). The trading plan will \nbe effective until March 8, 2025 to sell all of the (net) shares of up to 82,900  (gross) Class C Capital Stock \nissued upon the vesting of her Alphabet 2021 Performance Stock Units, as adjusted based on performance \n(net shares are net of tax withholding).\nThere were no \u201cnon-Rule 10b5-1 trading arrangements\u201d (as defined in Item 408 of Regulation S-K of the \nExchange Act) adopted, modified or terminated  during the fiscal quarter ended December 31, 2023 by our directors \nand Section 16 officers. Each of the Rule 10b5-1 trading arrangements are in accordance with our Policy Against \nInsider Trading and actual sale transactions made pursuant to such trading arrangements will be disclosed publicly in"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb3f8-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 89, "chroma:document": "Section 16 filings with the SEC in accordance with applicable securities laws, rules and regulations.\nRequired Disclosure Pursuant to Section 13(r) of the Exchange Act\nAs previously disclosed, Google LLC, a subsidiary of Alphabet, filed notifications with the Russian Federal \nSecurity Service pursuant to Russian encryption control requirements, which must be complied with prior to the import \nof covered items. The information provided pursuant to Section 13(r) of the Exchange Act in Part II, Item 5 of our \nQuarterly Report on Form 10-Q for the quarter ended September 30, 2023 is incorporated herein by reference.\nITEM 9C.  DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS\nNot applicable.Table of Contents Alphabet Inc.\n89."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb4d4-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 90, "chroma:document": "PART III\nITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE\nThe information required by this item will be included under the caption \u201cDirectors, Executive Officers, and \nCorporate Governance\u201d in our Proxy Statement for the 2024  Annual Meeting of Stockholders to be filed with the SEC \nwithin 120 days of the fiscal year ended December 31, 2023  (2024  Proxy Statement) and is incorporated herein by \nreference. The information required by this item regarding delinquent filers pursuant to Item 405 of Regulation S-K will \nbe included under the caption \u201cDelinquent Section 16(a) Reports\u201d in the 2024  Proxy Statement and is incorporated \nherein by reference.\nITEM 11. EXECUTIVE COMPENSATION\nThe information required by this item will be included under the captions \u201cDirector Compensation,\u201d \u201cExecutive \nCompensation\u201d and \u201cDirectors, Executive Officers, and Corporate Governance\u2014Corporate Governance and Board \nMatters\u2014Compensation Committee Interlocks and Insider Participation\u201d in the 2024  Proxy Statement and is \nincorporated herein by reference , except as to information disclosed therein pursuant to Item 402(v) of Regulation S-K \nrelating to pay versus performance .\nITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED \nSTOCKHOLDER MATTERS\nThe information required by this item will be included under the captions \u201cCommon Stock Ownership of Certain \nBeneficial Owners and Management\u201d and \u201cEquity Compensation Plan Information\u201d in the 2024  Proxy Statement and is \nincorporated herein by reference.\nITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE\nThe information required by this item will be included under the captions \u201cCertain Relationships and Related \nTransactions\u201d and \u201cDirectors, Executive Officers, and Corporate Governance\u2014Corporate Governance and Board \nMatters\u2014Director Independence\u201d in the 2024  Proxy Statement and is incorporated herein by reference.\nITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES\nThe information required by this item will be included under the caption \u201cIndependent Registered Public \nAccounting Firm\u201d in the 2024  Proxy Statement and is incorporated herein by reference.Table of Contents Alphabet Inc.\n90."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb560-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 91, "chroma:document": "PART IV\nITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES\nWe have filed the following documents as part of this Annual Report on Form 10-K:\n1. Consolidated Financial Statements\nReports of Independent Registered Public Accounting Firm 48\nFinancial Statements:\nConsolidated Balance Sheets 51\nConsolidated Statements of Income 52\nConsolidated Statements of Comprehensive Income 53\nConsolidated Statements of Stockholders\u2019 Equity 54\nConsolidated Statements of Cash Flows 55\nNotes to Consolidated Financial Statements 56\n2. Financial Statement Schedules\nSchedule II: Valuation and Qualifying Accounts\nThe table below details the activity of the allowance for credit losses and sales credits for the years ended \nDecember 31, 2021 , 2022 , and 2023  (in millions):\nBalance at\nBeginning of Year Additions UsageBalance at\nEnd of Year\nYear ended December 31, 2021 $ 1,344 $ 2,092 $ (2,047) $ 1,389 \nYear ended December 31, 2022 $ 1,389 $ 2,125 $ (2,301) $ 1,213 \nYear ended December 31, 2023 $ 1,213 $ 3,115 $ (2,737) $ 1,591 \nNote: Additions to the allowance for credit losses are charged to expense. Additions to the allowance for sales credits are charged against \nrevenues.\nAll other schedules have been omitted because they are not required, not applicable, or the required information \nis otherwise included.\n3. Exhibits\n2.01 Agreement and Plan of Merger, dated \nOctober 2, 2015, by and among Google Inc., \nthe Registrant and Maple Technologies Inc.Current Report on Form 8-K \n(File No. 001-37580) October 2, 2015\n3.01 Amended and Restated Certificate of \nIncorporation of the RegistrantCurrent Report on Form 8-K \n(File No. 001-37580) June 3, 2022\n3.02 Amended and Restated Bylaws of the \nRegistrant, dated October 19, 2022Current Report on Form 8-K"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb5ba-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 91, "chroma:document": "(File No. 001-37580)October 25, 2022\n4.01 Specimen Class A Common Stock certificate Current Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n4.02 Specimen Class C Capital Stock certificate Current Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n4.03 Alphabet Inc. Deferred Compensation Plan Current Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n4.04 Transfer Restriction Agreement, dated \nOctober 2, 2015, between the Registrant and \nLarry Page and certain of his affiliates Current Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n4.05 Transfer Restriction Agreement, dated \nOctober 2, 2015, between the Registrant and \nSergey Brin and certain of his affiliates Current Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n4.06 Joinder Agreement, dated December 31, \n2021, among the Registrant, Sergey Brin and \ncertain of his affiliates  Annual Report on Form 10-K \n(File No. 001-37580)February 2, 2022Exhibit\nNumber DescriptionIncorporated by reference herein\nForm DateTable of Contents Alphabet Inc.\n91."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb632-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 92, "chroma:document": "4.07 Transfer Restriction Agreement, dated \nOctober 2, 2015, between the Registrant and \nEric E. Schmidt and certain of its affiliatesCurrent Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n4.08 Class C Undertaking, dated October 2, 2015, \nexecuted by the RegistrantCurrent Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n4.09 Indenture, dated February 12, 2016, between \nthe Registrant and The Bank of New York \nMellon Trust Company, N.A., as TrusteeRegistration Statement on \nForm S-3 \n(File No. 333-209510)February 12, 2016\n4.10 Registrant Registration Rights Agreement \ndated December 14, 2015Registration Statement on \nForm S-3 \n(File No. 333-209518)February 12, 2016\n4.11 First Supplemental Indenture, dated April 27, \n2016, between the Registrant and The Bank \nof New York Mellon Trust Company, N.A., as \ntrusteeCurrent Report on Form 8-K\n(File No. 001-37580)April 27, 2016\n4.12 Form of the Registrant\u2019s 3.375% Notes due \n2024 (included in Exhibit 4.11)\n4.13 Form of the Registrant\u2019s 1.998% Note due \n2026Current Report on Form 8-K \n(File No. 001-37580)August 9, 2016\n4.14 Form of Global Note representing the \nRegistrant\u2019s 0.450% notes due 2025Current Report on Form 8-K \n(File No. 001-37580)August 5, 2020\n4.15 Form of Global Note representing the \nRegistrant\u2019s 0.800% notes due 2027Current Report on Form 8-K \n(File No. 001-37580)August 5, 2020\n4.16 Form of Global Note representing the \nRegistrant\u2019s 1.100% notes due 2030Current Report on Form 8-K"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb68c-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 92, "chroma:document": "(File No. 001-37580)August 5, 2020\n4.17 Form of Global Note representing the \nRegistrant\u2019s 1.900% notes due 2040Current Report on Form 8-K \n(File No. 001-37580)August 5, 2020\n4.18 Form of Global Note representing the \nRegistrant\u2019s 2.050% notes due 2050Current Report on Form 8-K \n(File No. 001-37580)August 5, 2020\n4.19 Form of Global Note representing the \nRegistrant\u2019s 2.250% notes due 2060Current Report on Form 8-K \n(File No. 001-37580)August 5, 2020\n4.20 Description of Registrant\u2019s Securities Annual Report on Form 10-K \n(File No. 001-37580)February 3, 2023\n10.01 u Form of Indemnification Agreement entered \ninto between the Registrant, its affiliates and \nits directors and officers Current Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n10.02 u*Form of Offer Letter for Directors\n10.03 u Offer Letter, dated March 20, 2015, between \nRuth Porat and Google Inc., as assumed by \nthe Registrant on October 2, 2015Current Report on Form 8-K \n(File No. 001-36380)March 26, 2015\n10.04 u Compensation Plan Agreement, dated \nOctober 2, 2015, between Google Inc. and \nthe RegistrantCurrent Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n10.05 u Director Arrangements Agreement, dated \nOctober 2, 2015, between Google Inc. and \nthe RegistrantCurrent Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n10.06 u Alphabet Inc. Deferred Compensation Plan Current Report on Form 8-K \n(File No. 001-37580)October 2, 2015\n10.07 u Alphabet Inc. Amended and Restated 2012"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb6dc-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 92, "chroma:document": "Stock PlanCurrent Report on Form 8-K\n(File No. 001-37580)June 5, 2020\n10.07.1 u Alphabet Inc. Amended and Restated 2012 \nStock Plan - Form of Alphabet Restricted \nStock Unit AgreementAnnual Report on Form 10-K\n(File No. 001-37580)February 4, 2020\n10.07.2 u Alphabet Inc. 2012 Stock Plan - Form of \nAlphabet Restricted Stock Unit AgreementQuarterly Report on Form 10-\nQ  (File No. 001-37580)November 3, \n2016Exhibit\nNumber DescriptionIncorporated by reference herein\nForm DateTable of Contents Alphabet Inc.\n92."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb736-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 93, "chroma:document": "10.08 u Alphabet Inc. Amended and Restated 2021 \nStock PlanCurrent Report on Form 8-K \n(file No. 001-37580)June 3, 2022\n10.08.1 u Alphabet Inc. Amended and Restated 2021 \nStock Plan - Form of Alphabet Restricted \nStock Unit AgreementQuarterly Report on Form 10-\nQ (file No. 001-37580)July 28, 2021\n10.08.2 u Alphabet Inc. Amended and Restated 2021 \nStock Plan - Form of Alphabet Restricted \nStock Unit AgreementQuarterly Report on Form 10-\nQ (File No. 001-37580)July 26, 2023\n10.08.3 u Alphabet Inc. Amended and Restated 2021 \nStock Plan - Form of Alphabet 2022 CEO \nPerformance Stock Unit AgreementAnnual Report on Form 10-K \n(File No. 001-37580) February 3, 2023\n10.08.4 u Alphabet Inc. Amended and Restated 2021 \nStock Plan - Form of Alphabet 2022 Non-\nCEO Performance Stock Unit AgreementAnnual Report on Form 10-K\n(File No. 001-37580)February 4, 2020\n10.08.5 u Alphabet Inc. Amended and Restated 2021 \nStock Plan - Form of Alphabet 2023 Non-\nCEO Performance Stock Unit AgreementQuarterly Report on Form 10-\nQ (File No. 001-37580)July 26, 2023\n10.09 u Alphabet Inc. Company Bonus Plan, as \namendedAnnual Report on Form 10-K\n(File No. 001-37350)February 2, 2023\n21.01 * Subsidiaries of the Registrant\n23.01 * Consent of Independent Registered Public \nAccounting Firm\n24.01 * Power of Attorney (incorporated by reference \nto the signature page of this Annual Report \non Form 10-K)\n31.01 * Certification of Chief Executive Officer \npursuant to Exchange Act Rules 13a-14(a) \nand 15d-14(a), as adopted pursuant to \nSection 302 of the Sarbanes-Oxley Act of \n2002"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb79a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 93, "chroma:document": "2002\n31.02 * Certification of Chief Financial Officer \npursuant to Exchange Act Rules 13a-14(a) \nand 15d-14(a), as adopted pursuant to \nSection 302 of the Sarbanes-Oxley Act of \n2002\n32.01 \u2021 Certifications of Chief Executive Officer and \nChief Financial Officer pursuant to 18 U.S.C. \nSection 1350, as adopted pursuant to \nSection 906 of the Sarbanes-Oxley Act of \n2002\n97.01 * Clawback Policy\n101.INS * Inline XBRL Instance Document - the \ninstance document does not appear in the \nInteractive Data File because its XBRL tags \nare embedded within the Inline XBRL \ndocument\n101.SCH * Inline XBRL Taxonomy Extension Schema \nDocument\n101.CAL * Inline XBRL Taxonomy Extension Calculation \nLinkbase Document\n101.DEF * Inline XBRL Taxonomy Extension Definition \nLinkbase Document\n101.LAB * Inline XBRL Taxonomy Extension Label \nLinkbase DocumentExhibit\nNumber DescriptionIncorporated by reference herein\nForm DateTable of Contents Alphabet Inc.\n93."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb7ea-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 94, "chroma:document": "101.PRE * Inline XBRL Taxonomy Extension \nPresentation Linkbase Document\n104 Cover Page Interactive Data File (embedded \nwithin the Inline XBRL document and \ncontained in Exhibit 101)Exhibit\nNumber DescriptionIncorporated by reference herein\nForm Date\n_________________\nu Indicates management compensatory plan, contract, or arrangement.\n* Filed herewith.\n\u2021 Furnished herewith.\nITEM 16. FORM 10-K SUMMARY\nNone.Table of Contents Alphabet Inc.\n94."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb844-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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{"source": "dataset/google-10-k-2023.pdf", "page": 95, "chroma:document": "SIGNATURES\nPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has \nduly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.\nDate: January 30, 2024  \n ALPHABET INC.\nBy: /S/    S UNDAR  PICHAI        \nSundar Pichai\nChief Executive Officer\n(Principal Executive Officer of the Registrant)\nPOWER OF ATTORNEY\nKNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes \nand appoints Sundar Pichai and Ruth M. Porat, jointly and severally, his or her attorney-in-fact, with the power of \nsubstitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and \nto file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange \nCommission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or \nsubstitutes, may do or cause to be done by virtue hereof.\nPursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been \nsigned below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.\n \n Table of Contents Alphabet Inc.\n95."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb89e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"source": "dataset/google-10-k-2023.pdf", "page": 96, "chroma:document": "Signature Title Date\n/S/    S UNDAR  PICHAIChief Executive Officer and Director (Principal \nExecutive Officer) January 30, 2024\nSundar Pichai\n/S/    R UTH M. P ORAT        President and Chief Investment Officer; Chief \nFinancial Officer (Principal Financial Officer) January 30, 2024\nRuth M. Porat\n/S/    A MIE THUENER  O'T OOLE        Vice President, Corporate Controller and \nPrincipal Accounting Officer January 30, 2024\nAmie Thuener O'Toole\n/S/    F RANCES H. A RNOLD        Director January 30, 2024\nFrances H. Arnold\n/S/    S ERGEY  BRIN        Co-Founder and Director January 30, 2024\nSergey Brin\n/S/   R. M ARTIN  CHAVEZ       Director January 30, 2024\nR. Martin Ch\u00e1vez\n/S/    L. J OHN DOERR        Director January 30, 2024\nL. John Doerr\n/S/    R OGER  W. F ERGUSON JR.       Director January 30, 2024\nRoger W. Ferguson Jr.\n/S/    J OHN L. H ENNESSY         Director, Chair January 30, 2024\nJohn L. Hennessy\n/S/    L ARRY  PAGE        Co-Founder and Director January 30, 2024\nLarry Page\n/S/    K. R AM SHRIRAM       Director January 30, 2024\nK. Ram Shriram\n/S/    R OBIN L. W ASHINGTON       Director January 30, 2024\nRobin L. WashingtonTable of Contents Alphabet Inc.\n96."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb8ee-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bb97a-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
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{"source": "dataset/msft-10-k-2023.pdf", "page": 1, "chroma:document": "to code, to analyze, to learn, to create."}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bba24-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bba7e-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbad8-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbb32-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbb82-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbbdc-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbc36-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbc86-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbce0-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbd44-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbd9e-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbdee-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbe48-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbea2-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbef2-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbf4c-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bbf9c-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc028-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc078-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc0d2-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc12c-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc17c-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc1d6-255e-11ef-be8d-0242ac1c000c
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metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc230-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc280-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc2e4-255e-11ef-be8d-0242ac1c000c
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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"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc33e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc398-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc3e8-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc442-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc49c-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc50a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc564-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc5be-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc618-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc672-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc6f4-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc74e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc7a8-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc7f8-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc852-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc8b6-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc910-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc96a-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bc9ba-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bca14-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bca64-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcabe-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcb18-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcb72-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcbcc-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcc76-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bccd0-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcd2a-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcdc0-255e-11ef-be8d-0242ac1c000c
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bce1a-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bce7e-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcece-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcf28-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcf82-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bcfdc-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd036-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd086-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd0e0-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd13a-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd194-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd1ee-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd248-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd2a2-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd2f2-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd37e-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd3d8-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd450-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd4dc-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd52c-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd586-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd5e0-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd63a-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd694-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd6ee-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd73e-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd798-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd7f2-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd84c-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd89c-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd8f6-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd950-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bd9aa-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bda0e-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bda5e-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdab8-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdb12-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdc48-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdcac-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdd06-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdd56-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bddb0-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bde0a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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"}


created_at: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bde64-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdf0e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdf68-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8bdfc2-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be012-255e-11ef-be8d-0242ac1c000c
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metadata:
{"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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be076-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be0d0-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be12a-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be17a-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be1d4-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be22e-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be288-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be30a-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be364-255e-11ef-be8d-0242ac1c000c
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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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be3be-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be418-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be4a4-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be4fe-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be558-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be5b2-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be602-255e-11ef-be8d-0242ac1c000c
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: 2024-06-08 06:19:44
topic: persistent://default/default/c73beabd-7314-4088-9399-3d1c466cffa3
id: ee8be666-255e-11ef-be8d-0242ac1c000c
encoding: FLOAT32
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"}


