Microsoft 2009 Annual Report Download - page 8

PAGE 8
Note About Forward-Looking Statements
Certain statements in this report, including estimates, projections, statements relating to our business plans,
objectives and expected operating results, and the assumptions upon which those statements are based, are
“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements
may appear throughout this report, including without limitation, the following sections: “Business”, “Management’s
Discussion and Analysis”, and “Risk Factors.” These forward-looking statements generally are identified by the
words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,”
“should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking
statements are based on current expectations and assumptions that are subject to risks and uncertainties which may
cause actual results to differ materially from the forward-looking statements. A detailed discussion of risks and
uncertainties that could cause actual results and events to differ materially from such forward-looking statements is
included in the section entitled “Risk Factors” in our fiscal year 2009 Form 10-K. We undertake no obligation to
update or revise publicly any forward-looking statements, whether as a result of new information, future events, or
otherwise.
BUSINESS DESCRIPTION
GENERAL
Our mission is to enable people and businesses throughout the world to realize their full potential. Since the
company was founded in 1975, we have worked to achieve this mission by creating technology that transforms the
way people work, play, and communicate. We develop and market software, services, hardware, and solutions that
we believe deliver new opportunities, greater convenience, and enhanced value to people’s lives. We do business
throughout the world and have offices in more than 100 countries.
We generate revenue by developing, manufacturing, licensing, and supporting a wide range of software products
and services for many different types of computing devices. Our software products and services include operating
systems for servers, personal computers, and intelligent devices; server applications for distributed computing
environments; information worker productivity applications; business solutions applications; high-performance
computing applications; software development tools; and video games. We provide consulting and product and
solution support services, and we train and certify computer system integrators and developers. We also design and
sell hardware including the Xbox 360 video game console, the Zune digital music and entertainment device, and
peripherals. Online offerings and information are delivered through Bing, Windows Live, Office Live, our MSN portals
and channels, and the Microsoft Online Services platform which includes offerings for businesses such as Microsoft
Dynamics CRM Online, Exchange Hosted Services, Exchange Online, and SharePoint Online. We enable the
delivery of online advertising across our broad range of digital media properties and on Bing through our proprietary
adCenter platform.
We also conduct research and develop advanced technologies for future software products and services. We
believe that delivering breakthrough innovation and high-value solutions through our integrated software platform is
the key to meeting our customers’ needs and to our future growth. We believe that we will continue to lay the
foundation for long-term growth by delivering new products and services, creating new opportunities for partners,
improving customer satisfaction, and improving our internal processes. Our focus is to build on this foundation
through ongoing innovation in our integrated software platforms; by delivering compelling value propositions to
customers; by responding effectively to customer and partner needs; and by continuing to emphasize the importance
of product excellence, business efficacy, and accountability.
OPERATING SEGMENTS
We have five operating segments: Client, Server and Tools, Online Services Business, Microsoft Business Division,
and Entertainment and Devices Division. Our segments provide management with a comprehensive financial view of
our key businesses. The segments enable the alignment of strategies and objectives across the development, sales,
marketing, and services organizations, and they provide a framework for timely and rational allocation of
development, sales, marketing, and services resources within businesses.
Due to our integrated business structure, operating costs included in one segment may benefit other segments.
Therefore, these segments are not designed to measure operating income or loss that is directly related to the
products and services included in each segment. Inter-segment cost commissions are estimated by management
and used to compensate or charge each segment for such shared costs and to motivate shared effort. Segments
should not be viewed as discrete or easily separable businesses.