Microsoft 2006 Annual Report Download - page 58

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PAGE 57
In fiscal year 2005, our Board of Directors declared the following dividends:
Declaration Date
Dividend
Per Share
Date of Record
T
otal Amount
(in millions)
Payment Date
July 20, 2004
$0.08
August
25,
2004
$ 870 September
14,
2004
July 20, 2004
3.00
November
17,
2004
32,640 December 2, 2004
September 15, 2004
0.08
November 17, 2004
871 December 2, 2004
December 8, 2004
0.08
February 17, 2005
868 March 10, 2005
March 23, 2005
0.08
May 18, 2005
860 June 9, 2005
June 15, 2005
0.08
August 17, 2005
857(1)
September 8, 2005
(1) The dividend declared on June 15, 2005 was included in other current liabilities as of June 30, 2005.
NOTE 13 OTHER COMPREHENSIVE INCOME
The activity in other comprehensive income and related tax effects were as follows:
(In millions)
Y
ear Ended June 30
2006
2005
2004
Net gains/(losses) on derivative instruments:
Unrealized gains/(losses), net of tax effect of $(25) in 2006, $(63) in 2005,
and $49 in 2004
$ (47) $(116)
$ 92
Reclassification adjustment for losses included in net income, net of tax effect
of $66 in 2006, $31 in 2005, and $5 in 2004
123
58
9
Net gains/(losses) on derivative instruments
76
(58)
101
Net unrealized investment gains/(losses):
Unrealized holding losses, net of tax effect of $(199) in 2006, $(69) in 2005,
and $(994) in 2004
(369) (128)
(1,846)
Reclassification adjustment for losses included in net income, net of tax effect
of $47 in 2006, $269 in 2005, and $524 in 2004
87
499
973
Net unrealized investment gains/(losses)
(282) 371
(873)
Translation adjustments and other
9
(6)
51
Other comprehensive income/(loss)
$(197) $ 307
$
(721)
The components of accumulated other comprehensive income were as follows:
(In millions)
Y
ear Ended June 30
2006
2005
2004
Net gains on derivative instruments
$
103 $ 27
$
85
Net unrealized investment gains
1,062 1,344
973
Translation adjustments and other
64 55
61
Accumulated other comprehensive income
$
1,229 $ 1,426
$
1,119
NOTE 14 EMPLOYEE STOCK AND SAVINGS PLANS
Effective July 1, 2005, we adopted SFAS No. 123(R), Share-Based Payment, using the modified prospective application
transition method. Because the fair value recognition provisions of SFAS No. 123, Stock-Based Compensation, and SFAS
No. 123(R) were materially consistent under our equity plans, the adoption of SFAS No. 123(R) did not have a significant impact
on our financial position or our results of operations. Prior to our adoption of SFAS No. 123(R), benefits of tax deductions in
excess of recognized compensation costs were reported as operating cash flows. SFAS No. 123(R) requires excess tax benefits
be reported as a financing cash inflow rather than as a reduction of taxes paid.
The stock-based compensation and related income tax benefits were as follows:
(In millions)
2006
2005
2004
Total stock-based compensation
$1,715 $2,448
$
5,734
Income tax benefits related to stock-based compensation
$ 600 $ 857
$
2,007