Microsoft 2006 Annual Report Download - page 57

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PAGE 56
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
and assumptions supporting our assessments are reasonable, the final determination of tax audit settlements and any related
litigation could be materially different than that which is reflected in historical income tax provisions and recorded assets and
liabilities. If we were to settle an audit or a matter under litigation, it could have a material effect on our income tax provision,
net income, or cash flows in the period or periods for which that determination is made. Due to the complexity involved we are
not able to estimate the range of reasonably possible losses in excess of amounts recorded.
The Internal Revenue Service (“IRS”) has completed and closed its audits of our consolidated federal income tax returns
through 1999. The IRS is currently conducting an audit of our consolidated federal income tax return for tax years 2000 through
2003.
NOTE 11 OTHER LONG-TERM LIABILITIES
(In millions)
June 30
2006
2005
Tax contingencies $4,194
$3,066
Legal contingencies 1,022
961
Employee stock option transfer program –
48
Other 7
1
83
Other lon
g
-
t
erm liabilities $5,287
$4,158
NOTE 12 STOCKHOLDERS’ EQUITY
Shares of common stock outstanding were as follows:
(In millions)
Y
ear Ended June 30
2006
2005
2004
Balance, beginning of year
10,710
10,862
10,771
Issued
106
160
215
Repurchased
(754) (312)
(124)
Balance, end of year
10,062
10,710
10,862
On July 20, 2006, we announced the completion of the $30 billion Microsoft common stock repurchase program approved by
our Board of Directors on July 20, 2004. The repurchases were made using our cash resources. Our Board of Directors had
previously approved a program to repurchase shares of our common stock. Under these repurchase plans, we have made the
following share repurchases:
(share amounts in millions, dollars in billions)
Fiscal year
2006(1)
2005(1)
2004
S
hares
A
mount
S
hares
Amount
S
hares
A
mount
First quarter 114.
1
$3.0
22.8
$0.6 43.3
$1.2
Second quarter 283.
1
7.7
23.6
0.7 30.5
0.8
Third quarter 180.7
4.9
95.1
2.4 49.9
1.4
Fourth quarter 175.6
4.
1
170.7
4.3 –
–
Total 753.5
$19.7
312.2
$8.0 123.7
$3.4
(1) All amounts repurchased in fiscal year 2005 and in fiscal year 2006 were repurchased under the repurchase plan
approved by our Board of Directors on July 20, 2004.
In fiscal year 2006, our Board of Directors declared the following dividends:
Declaration Date
Dividend
Per Share
Date of Record
T
otal Amount
(in millions)
Payment Date
September 23, 2005
$0.08
November
17,
2005
$846 December
8,
2005
December 14, 2005
0.09
February 17, 2006
926 March 9, 2006
March 27, 2006
0.09
May 17, 2006
916 June 8, 2006
June 21, 2006
0.09
August 17,2006
906(1) September
14,
2006
(1) The dividend declared on June 21, 2006 will be paid after the filing date of this report on Form 10-K and was included in
other current liabilities as of June 30, 2006.