Microsoft Corporation General Company Information Address One Microsoft Way Redmond, WA 98052-6399 United States Phone: 425 882-8080 Fax: 425 936-7329 Country United States Ticker MSFT Date of Incorporation June 1981 , WA, United States Number of Employees 89,000 (Approximate Full-Time as of 06/30/2010) Number of Shareholders 138,568 (record) (as of 07/20/2010) Company Website www.microsoft.com Annual Meeting Date In November Mergent Dividend Achiever No Closing Price As of 02/18/2011 : 27.06 02/20/2011 1 Mergent, Inc. Microsoft Corporation Business Description Industry Internet & Software NAICS Primary NAICS: 511210 - Software Publishers Secondary NAICS: 334119 - Other Computer Peripheral Equipment Manufacturing 423430 - Computer and Computer Peripheral Equipment and Software Merchant Wholesalers 541519 - Other Computer Related Services SIC Primary SIC: 7372 - Prepackaged software Secondary SIC: 3577 - Computer peripheral equipment, nec 7379 - Computer related services, nec Business Description Microsoft is engaged in developing, manufacturing, licensing, and supporting a range of software products and services for several computing devices. Co.'s software products and services include operating systems for personal computers, servers, and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business and computing applications; software development tools; and video games. Co. also provides consulting and product and application support services, as well as trains and certifies computer system integrators and developers. In addition, Co. designs and sells hardware including the Xbox 360 gaming and entertainment console and accessories, the Zune digital music and entertainment device and accessories, and Microsoft personal computer (PC) hardware products. Co. operates through five segments. The Windows & Windows Live segment offerings consist of Windows operating systems, including Windows 7, and online software and services through Windows Live. Windows Live primarily generates revenue from online advertising. The Server and Tools segment provides product and service such as Windows Server, Microsoft SQL Server, Windows Azure and other cloud and server offerings. The Server and Tools segment also provides Enterprise Services, which comprise Premier product support services and Microsoft Consulting Services. The Online Services segment consists of an online advertising platform with offerings for both publishers and advertisers, online information offerings, such as Bing, and the MSN portals and channels around the world. The Microsoft Business segment provides offerings such as Microsoft Office, SharePoint, and Microsoft Dynamics business applications. The Entertainment and Devices Division segment provides applications such as the Xbox 360 platform, the Zune digital music and entertainment platform, PC software games, online games and services, Mediaroom (Co.'s Internet protocol television software), Windows Phone, Windows Embedded device platforms, application software for Apple's Macintosh computers, and Microsoft PC hardware products. Geographic Analysis Revenues Report Date 06/30/2010 02/20/2011 2 Mergent, Inc. Microsoft Corporation Report Date 06/30/2010 Currency USD Scale Thousands United States 36,173,000 Other Countries 26,311,000 Total 62,484,000 Report Date 06/30/2009 Currency USD Scale Thousands United States 33,052,000 Other Countries 25,385,000 Total 58,437,000 Report Date 06/30/2008 Currency USD Scale Thousands United States 35,928,000 Other Countries 24,492,000 Total 60,420,000 02/20/2011 3 Mergent, Inc. Microsoft Corporation Business Summary Microsoft develops, manufactures, licenses, and supports software products and services for computing devices. Co.'s software products and services include operating systems for personal computers, servers, and intelligent devices; server applications; information worker productivity applications; business applications; computing applications; and video games. In addition, Co. provides consulting and support services, and trains and certifies computer system integrators and developers, as well as designs and sells hardware. Co.'s five segments are: Windows & Windows Live Division; Server and Tools; Online Services Division; Microsoft Business Division; and Entertainment and Devices Division. Executives Top 5 Executives Officers William H. Gates Title : Chairman Compensation History Year Values in USD 2006 2005 2004 Salary 616,667 600,000 591,667 Bonus 350,000 400,000 310,000 Other Annual Compensation/Fees N/A N/A N/A Stock Awards N/A N/A N/A All Other Compensation 2,112 2,469 2,787 Total Compensation 968,779 1,002,469 904,454 Summary Biography William H. Gates, III, a Co-founder of Microsoft Corporation, has served as Chairman since its incorporation in 1981. Mr. Gates retired as an employee effective July 1, 2008, but continues to serve as Microsoft's Chairman, and serve as an Advisor on key development projects. Mr. Gates served as Chief Software Architect from January 2000 until June 2006, when he announced a two-year plan for his transition out of a day-to-day role. Mr. Gates served as Chief Executive Officer of Microsoft Corporation from 1981 until January 2000, when he resigned as Chief Executive Officer and assumed the position of Chief Software Architect. Mr. Gates is also a Director of Berkshire Hathaway Inc. He is a former Director of ICOS Corporation. His work overseeing the Bill and Melinda Gates Foundation provides ongoing global insights relevant to Microsoft¿s current and future business opportunities. Steven A. Ballmer Title : Chief Executive Officer Compensation History Year Values in USD 2010 2009 2008 Salary 670,000 665,833 640,833 Bonus 670,000 600,000 700,000 All Other Compensation 11,121 10,794 10,001 Total Compensation 1,351,121 1,276,627 1,350,834 Summary Biography Steven A. Ballmer, was appointed Chief Executive Officer of Microsoft Corporation in January 2000, assuming full management responsibility for Microsoft Corporation, and has been a Director since 2000. Mr. Ballmer joined Microsoft in 1980 and was the first Business Manager hired by Mr. Gates. During the past 20 years, Mr. Ballmer has headed several 02/20/2011 4 Mergent, Inc. Microsoft Corporation Microsoft divisions, including operations, operating systems development, and sales and support. He served as President from July 1998 to February 2001. Previously, he had served as Executive Vice President, Sales and Support since February 1992. Mr. Ballmer graduated from Harvard University with a Bachelor's degree in Mathematics and Economics. After college, he worked for two years at Procter & Gamble Co. as an Assistant Product Manager and, before joining Microsoft, attended Stanford University Graduate School of Business. Lisa E. Brummel Title : Senior Vice President Summary Biography Lisa E. Brummel, was named Senior Vice President, Human Resources of Microsoft Corporation in December 2005. She had been Corporate Vice President, Human Resources of Microsoft since May 2005. From May 2000 to May 2005, she had been Corporate Vice President of the Home & Retail Division of Microsoft. Since joining Microsoft in 1989, Ms. Brummel has held a number of management positions at Microsoft, including General Manager of Consumer Productivity business, Product Unit Manager of the Kids Business, and Product Unit Manager of Desktop and Decision reference products. Before joining Microsoft in 1989, Ms. Brummel held various sales management and marketing positions with Prentice Hall Inc. publishing company. Ms. Brummel holds a Master's degree in Business Administration from the University of California, Los Angeles, and a Bachelor of Arts degree in Sociology from Yale University. She is active in charitable ventures associated with Hopelink community services, the University of Washington Medical Center, Yale University, the Human Rights Campaign and the Women's Funding Alliance. Richard F. Rashid Title : Senior Vice President Summary Biography Dr. Richard (Rick) Rashid, Ph.D., has served as Senior Vice President, Research of Microsoft Corporation since 2000. Dr. Rashid oversees worldwide operations for Microsoft Research. After joining Microsoft in September 1991, Dr. Rashid served as Director and Vice President of the Microsoft Research division and was promoted to his current role in 2000. Before joining Microsoft, Dr. Rashid was a Professor of Computer Science at Carnegie Mellon University (CMU). Dr. Rashid's research interests have focused on artificial intelligence, operating systems, networking and multiprocessors. He has participated in the design and implementation of the University of Rochester's Rochester Intelligent Gateway operating system, the Rochester Virtual Terminal Management System, the CMU Distributed Sensor Network Testbed, and CMU's SPICE distributed personal computing environment. He also co-developed of one of the earliest networked computer games, "Alto Trek," during the mid-1970s. Dr. Rashid is a Member of the National Science Foundation Computer Directorate Advisory Committee and a past Member of the Defense Advanced Research Projects Agency UNIX Steering Committee and the Computer Science Network Executive Committee. He is also a former Chairman of the Association for Computing Machinery Software System Awards Committee. Dr. Rashid received a Master of Science (1977) and Doctoral (1980) degrees in Computer Science from the University of Rochester. He graduated with honors in Mathematics and Comparative