Microsoft 2015 Annual Report Download - page 63

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62
Following are the supplemental consolidated results of Microsoft Corporation on an unaudited pro forma basis, as if
the Acquisition had been consummated on July 1, 2012:
(In millions, except per share amounts)
Y
ear Ended June 30, 2014 2013
Revenue $ 96,248 $ 93,243
Net income $ 20,234 $ 20,153
Diluted earnings per share $ 2.41 $2.38
These pro forma results were based on estimates and assumptions, which we believe are reasonable. They are not
the results that would have been realized had we been a combined company during the periods presented and are
not necessarily indicative of our consolidated results of operations in future periods. The pro forma results include
adjustments primarily related to purchase accounting adjustments and the elimination of related party transactions
between Microsoft and NDS. Acquisition costs and other nonrecurring charges incurred are included in the earliest
period presented.
During the fourth quarter of fiscal year 2014, we incurred $21 million of acquisition costs associated with the
purchase of NDS. Acquisition costs are primarily comprised of transaction fees and direct acquisition costs, including
legal, finance, consulting, and other professional fees. These costs are included in impairment, integration, and
restructuring expenses on our consolidated income statement for fiscal year 2014.
Certain concurrent transactions were recognized separately from the Acquisition. Prior to the Acquisition, we had
joint strategic initiatives with Nokia; this contractual relationship was terminated in conjunction with the Acquisition.
No gain or loss was recorded upon termination of this agreement, as it was determined to be at market value. In
addition, we agreed to license Nokia’s mapping services and will pay Nokia separately for the services provided
under a four-year license as they are rendered.
Yammer
On July 18, 2012, we acquired Yammer, Inc. (“Yammer”), a leading provider of enterprise social networks, for $1.1
billion in cash. Yammer added an enterprise social networking service to Microsoft’s portfolio of complementary
cloud-based services. The major classes of assets to which we allocated the purchase price were goodwill of $937
million and identifiable intangible assets of $178 million. We assigned the goodwill to Commercial Other under our
current segment structure. Yammer was consolidated into our results of operations starting on the acquisition date.
Other
During fiscal year 2015, we completed 15 additional acquisitions for total cash consideration of $892 million. These
entities have been included in our consolidated results of operations since their respective acquisition dates.
Pro forma results of operations for Mojang and our other acquisitions during the current period have not been
presented because the effects of these business combinations, individually and in aggregate, were not material to
our consolidated results of operations.