To sign up for this free service, visit the Annual Report site on the Investor Relations website at: http://www.microsoft.com/investor/AnnualReports/default.aspx. . Our reportable segments are described below. Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. Xbox Game Pass is a community with access to a curated library of over 100 first- and third-party console and PC titles. Our managers strive to model our culture and values in their actions, to coach their teams to define objectives and adapt and learn, and to care deeply for their employees, seeking to understand their capabilities, ambitions, and invest in their growth. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. We may also purchase or license technology that we incorporate into our products and services. Refer to Note 12 Income Taxes of the Notes to Financial Statements for further discussion. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially. Our international operations provide a significant portion of our total revenue and expenses. All share repurchases were made using cash resources. Over 42 million people across every continent have accessed free training through our skills initiative. Organizational tools such as Collections, Vertical Tabs, and Immersive Reader help you make the most of your time while browsing, streaming, searching, sharing, and more. In the same way that Office revolutionized productivity for knowledge workers, Power Platformwhich has over 16 million monthly usersis transforming application development so that anyone can automate workflows, create apps, build virtual agents, and analyze data. To achieve our vision, our research and development efforts focus on three interconnected ambitions: Reinvent Productivity and Business Processes. 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Other news and announcements that we may post from time to time that investors might find useful or interesting. Unearned revenue also includes payments for consulting services to be performed in the future, LinkedIn subscriptions, Office 365 subscriptions, Xbox subscriptions, Windows 10 post-delivery support, Dynamics business solutions, and other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. The amortization of these costs is included in cost of revenue over the estimated life of the products. Satya Nadella To use individual functions (e.g., mark statistics as favourites, set Certain acquired net operating loss carryforwards are subject to an annual limitation but are expected to be realized with the exception of those which have a valuation allowance. We are subject to income tax in many jurisdictions outside the U.S. Our operations in certain jurisdictions remain subject to examination for tax years 1996 to 2020, some of which are currently under audit by local tax authorities. Partnering with organizations on their digital transformation during this period is one of our largest opportunities and we are uniquely positioned to become the strategic digital transformation platform and partner of choice; their success is our success. This is why we were the first major tech company to support GDPRthe EUs privacy law that is the standard for privacy legislation around the worldand why we are strong advocates for passage of comprehensive federal privacy legislation in the United States. Management does not believe any remaining unrealized losses represent impairments based on our evaluation of available evidence. A paid subscription is required for full access. The revenue didn't grow by itself, and there is more than one reason behind it. Net realizable value is the estimated selling price less estimated costs of completion, disposal, and transportation. We know that as we become more representative of the communities where we live and work, and the people around the world who we aspire to serve, we become better at helping everyone on the planet achieve more. The largest category of OEMs are direct OEMs as our relationship with them is managed through a direct agreement between Microsoft and the OEM. We must continue to evolve and adapt over an extended time in pace with this changing environment. Licenses for on-premises software provide the customer with a right to use the software as it exists when made available to the customer. As of June 30, 2021, $8.7 billion remained of this $40.0 billion share repurchase program. The company's gross margin guidance will remain at above 20 percent . Many of these revenue and expenses are denominated in currencies other than the U.S. dollar. Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. The plaintiffs have filed supplemental expert evidence, portions of which the defendants have moved to strike. Therefore, we recorded a net income tax benefit of $620 million in the third quarter of fiscal year 2021 to reflect the results of the India Supreme Court decision impacting fiscal year 1996 through fiscal year 2016. That compared with a Wall Street . Slack provides teamwork and collaboration software. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. 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