Microsoft 2005 Annual Report Download - page 63

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PAGE 62
Significant reconciling items are as follows:
(In millions)
Y
ear Ended June 30
2003
2004
2005
Operating income reconciling amounts:
Legal settlements and contingent liabilities $(1,079)
$(2,832)
$
(2,312)
Stock-based compensation expense
(3,749)
(4,516)
(1,042)
Revenue reconciling amounts
(508)
344
325
Corporate-level expenses(1)
(1,980)
(3,037)
(3,405)
Other
803
410
167
Total $(6,513)
$(9,631)
$ (6,267)
(1) Corporate-level expenses exclude legal settlements and contingent liabilities, stock-based compensation expense, and
revenue reconciling amounts presented separately in those line items.
Sales to Dell and its subsidiaries in the aggregate accounted for approximately 10% of total fiscal year 2004 and 2005
revenue. These sales were made primarily through our OEM and volume licensing channels and were included in all operating
segments. No single customer accounted for more than 10% of revenue in 2003.
Revenue, classified by the major geographic areas in which we operate, is as follows:
(In millions)
Y
ear Ended June 30
2003 2004 2005
United States(1) $22,077 $25,046 $26,949
Other countries
10,110
11,789
12,839
Total $32,187 $36,835 $39,788
(1) Includes shipments to customers in the United States, licensing to certain OEMs and multinational organizations, and
exports of finished goods, primarily to Latin America and Canada.
Long-lived assets, classified by the geographic location of the controlling statutory company in which that company operates, are
as follows:
(In millions)
Y
ear Ended June 30
2004 2005
United States $5,365 $5,506
Other countries 645 648
Total $6,010 $6,154