Microsoft 2002 Annual Report Download - page 21

MSFT 23 / 2002 FORM 10-K
Part I
Item 1, 2, 3, 4
CONSUMER COMMERCE INVESTMENTS
Microsoft faces many competitors in the online real estate and online automotive service spaces, including Homestore, AOL’s House and Home channel,
Autobytel, AOL autos, and Yahoo! autos.
OTHER
PC input devices face substantial competition from computer manufacturers, since computers are typically sold with a keyboard and mouse, and other
manufacturers of these devices. Microsoft Press competes in the retail book and eLearning markets with publishers that also create content on Microsoft
technologies. A few of the retail competitors are Pearson, WROX, Sybex, and Wiley. The major eLearning competitors are Smartforce and NetG.
EMPLOYEES
As of June 30, 2002, the Company employed approximately 50,500 people on a full-time basis, 34,600 in the United States and 15,900 internationally. Of the
total, 20,800 were in product research and development, 23,500 in sales, marketing, and support, 2,200 in manufacturing and distribution, and 4,000 in
finance and administration. Microsoft’s success is highly dependent on its ability to attract and retain qualified employees. Competition for employees is
intense in the software industry. To date, the Company believes it has been successful in its efforts to recruit qualified employees, but there is no assurance
that it will continue to be as successful in the future. None of the Company’s employees are subject to collective bargaining agreements. The Company
believes relations with its employees are excellent.
ITEM 2. PROPERTIES
The Company’s corporate offices consist of approximately 8.4 million square feet of office building space located in King County, Washington, of which 5.7
million square feet of corporate campus space situated on slightly more than 300 acres of land is owned and approximately 2.7 million square feet is leased.
The Company is constructing three buildings with approximately 392,000 square feet of space that will be occupied in the Fall of 2003. To accommodate
expansion needs the Company purchased approximately 38 acres, and has an option to purchase approximately 112 additional acres, of land in Issaquah,
Washington, which can accommodate 2.95 million square feet of additional office space. The Company leases many sites domestically totaling approximately
3.0 million square feet of office building space.
The Company leases many sites internationally totaling approximately 4.1 million square feet, including the Company’s European Operations Center and
localization division which leases a 382,000 square-foot campus in Dublin, Ireland, a 45,000 square-foot disk duplication facility in Humacao, Puerto Rico and
a 36,000 square-foot facility in Singapore for the Company’s Asia Pacific Operations Center. Leased office building space includes the following locations:
Tokyo, Japan 343,000 square feet; Unterschleissheim, Germany 253,000 square feet; United Kingdom campus 242,000 square feet; Les Ulis, France
229,000 square feet; and Beijing, China 115,000 square feet.
The Company’s facilities are fully used for current operations of all segments and suitable additional space is available to accommodate expansion
needs.
ITEM 3. LEGAL PROCEEDINGS
See Note 19—Contingencies of the Notes to Financial Statements (Item 8) for information regarding legal proceedings.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of fiscal 2002.