Microsoft 2009 Annual Report Download - page 75

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PAGE 75
NOTE 21 EMPLOYEE SEVERANCE
In January 2009, we announced and implemented a resource management program to reduce discretionary
operating expenses, employee headcount, and capital expenditures. As part of this program, we announced the
elimination of up to 5,000 positions in research and development, marketing, sales, finance, legal, human resources,
and information technology by June 30, 2010.
During the fiscal year ended June 30, 2009, we recorded charges of $330 million for the expected reduction in
employee headcount which was recorded as corporate-level activity. During the year we had a net reduction of
approximately 4,400 positions under the resource management program.
The changes in our employee severance liabilities were as follows:
(In millions)
Y
ear Ended June 30, 2009
Balance, beginning of period $ –
Employee severance charges 330
Cash payments (203)
Balance, end of period $127
NOTE 22 SEGMENT INFORMATION AND GEOGRAPHIC DATA
Segment revenue and operating income (loss) was as follows:
(In millions)
Year Ended June 30, 2009
2008 2007
Revenue:
Client $14,414
$ 16,472 $14,779
Server and Tools 14,135
13,121 11,117
Online Services Business 3,088
3,190 2,434
Microsoft Business Division 18,902
18,935 16,478
Entertainment and Devices Division 7,753
8,213 6,136
Unallocated and other 145
489 178
Consolidated $58,437
$ 60,420 $51,122
(In millions)
Y
ear Ended June 30, 2009
2008 2007
Operating Income (Loss):
Client $10,435 $ 12,566 $11,295
Server and Tools 5,047 4,170 3,520
Online Services Business (2,391 ) (1,304 ) (617)
Microsoft Business Division 11,940 12,169 10,757
Entertainment and Devices Division 5 325 (1,945)
Reconciling amounts (4,673 ) (5,655 ) (4,572)
Consolidated $20,363
$ 22,271 $18,438