Microsoft 2007 Annual Report Download - page 28

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During fiscal years 2007 and 2006, our Board of Directors declared the following dividends:
Declaration Date Per Share Dividend Record Date Total Amount Payment Date
(in millions)
(Fiscal year 2007)
September 13, 2006 $0.10 November 16, 2006 $980 December 14, 2006
December 20, 2006 $0.10 February 15, 2007 $978 March 8, 2007
March 26, 2007 $0.10 May 17, 2007 $952 June 14, 2007
June 27, 2007 $0.10 August 16, 2007 $938 September 13, 2007
(Fiscal year 2006)
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 $897 September 14, 2006
On July 20, 2006, we announced the completion of the repurchase program initially approved by our Board of
Directors on July 20, 2004 to buy back up to $30.00 billion in Microsoft common stock. During fiscal year 2006,
we repurchased 754 million shares, or $19.75 billion, of our common stock under this plan. On July 20, 2006, we
announced that our Board of Directors authorized two new share repurchase programs: a $20.00 billion tender
offer, which was completed on August 17, 2006; and authorization for up to an additional $20.00 billion ongoing
share repurchase program with an expiration of June 30, 2011. Under the tender offer, we repurchased
approximately 155 million shares of common stock, or 1.5% of our common shares outstanding, for approximately
$3.84 billion at a price per share of $24.75. On August 18, 2006, we announced that the authorization for the
$20.00 billion ongoing share repurchase program had been increased by approximately $16.16 billion. As a
result, we are authorized to repurchase additional shares in an amount up to $36.16 billion through June 30,
2011. As of June 30, 2007, approximately $15.14 billion remained of the $36.16 billion approved repurchase
amount.
We believe existing cash and equivalents and short-term investments, together with funds generated from
operations, should be sufficient to meet operating requirements, regular quarterly dividends, and planned share
repurchases. Our philosophy regarding the maintenance of a balance sheet with a large component of cash and
short-term investments, as well as equity and other investments, reflects our views on potential future capital
requirements relating to research and development, creation and expansion of sales distribution channels,
investments and acquisitions, share dilution management, legal risks, and challenges to our business model. We
regularly assess our investment management approach in view of our current and potential future needs.
Off-Balance Sheet Arrangements and Contractual Obligations
We provide indemnifications of varying scope and amount to certain customers against claims of intellectual
property infringement made by third parties arising from the use of our products. We evaluate estimated losses for
such indemnifications under SFAS No. 5, Accounting for Contingencies, as interpreted by Financial Accounting
Standards Board (“FASB”) Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others. We consider factors such as the degree of
probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. To
date, we have not encountered material costs as a result of such obligations and have not accrued any material
liabilities related to such indemnifications in our financial statements.