Microsoft 2006 Annual Report Download - page 67

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PAGE 66
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Significant reconciling items were as follows:
(In millions)
Y
ear Ended June 30
2006
2005
2004
Operating income reconciling amounts:
Legal settlements and contingent liabilities
$(1,32
1
) $(2,312
)
$(2,832)
Stock-based compensation expense
(127) (1,042
)
(4,516)
Revenue reconciling amounts
308
286
372
Corporate-level expenses(1)
(3,742) (3,493
)
(3,128)
Other
(27) 201
385
Total
$(4,909) $(6,360
)
$(9,719)
(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 11% of fiscal year 2006 and 10% of total
fiscal year 2005 and 2004 revenue. These sales were made primarily through our OEM and volume licensing channels and
were included in all operating segments.
Revenue, classified by the major geographic areas in which our customers are located, were as follows:
(In millions)
Y
ear Ended June 30
2006
2005
2004
United States(1)
$29,730 $26,949
$25,046
Other countries
14,552 12,839
11,789
Total
$44,282 $39,788
$36,835
(1) Includes shipments to customers in the United States and licensing to certain OEMs and multinational organizations.
Long-lived assets, classified by the geographic location of the controlling statutory company in which that company operates,
were as follows:
(In millions)
Y
ear Ended June 30
2006
2005
United States $6,66
1
$5,506
Other countries 788
648
Total $7,449
$6,154
NOTE 19 SUBSEQUENT EVENTS
On July 12, 2006, the European Commission imposed a fine of €281 million ($351 million) on Microsoft related to the
Commission’s March 2004 decision in its competition law investigation. As of June 30, 2006, the total amount of the fine was
included in other current liabilities.
On July 20, 2006, we announced that our Board of Directors authorized two new share repurchase programs, comprised of a
$20 billion tender offer which was completed on August 17, 2006, and an additional $20 billion ongoing share repurchase
program with an expiration of June 30, 2011. Under the tender offer, we repurchased approximately 155 million shares of our
common stock, or approximately 1.5% of our common stock outstanding, for approximately $3.8 billion at a per share price of
$24.75.
On August 18, 2006, we announced that the authorization for the ongoing share repurchase program, previously announced
on July 20, 2006, had been increased by approximately $16.2 billion. As a result, the company is authorized to repurchase
additional shares in an amount up to $36.2 billion through June 30, 2011.