Microsoft 2012 Annual Report Download - page 33

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reduce potential dilution of earnings per share upon conversion of the notes. Under the capped call transactions, we
purchased from the option counterparties capped call options that in the aggregate relate to the total number of shares of
our common stock underlying the notes, with a strike price equal to the conversion price of the notes and with an initial
cap price equal to $37.16, which is adjusted periodically to mirror any adjustments to the conversion price. The purchased
capped calls were valued at $40 million and recorded to stockholders’ equity.
Unearned Revenue
Unearned revenue at June 30, 2012 comprised mainly unearned revenue from volume licensing programs. Unearned
revenue from volume licensing programs represents customer billings for multi-year licensing arrangements paid for either
at inception of the agreement or annually at the beginning of each billing coverage period and accounted for as
subscriptions with revenue recognized ratably over the billing coverage period. Unearned revenue at June 30, 2012 also
included payments for: post-delivery support and consulting services to be performed in the future; Xbox LIVE
subscriptions and prepaid points; the Windows Upgrade Offer; Microsoft Dynamics business solutions products; Skype
prepaid credits and subscriptions; OEM minimum commitments; and other offerings for which we have been paid in
advance and earn the revenue when we provide the service or software, or otherwise meet the revenue recognition
criteria.
The following table outlines the expected future recognition of unearned revenue as of June 30, 2012:
(In millions)
Three Months Ending,
September 30, 2012
$
6,874
December 31, 2012
5,635
March 31, 2013
4,323
June 30, 2013
1,821
Thereafter
1,406
Total
$
20,059
Share Repurchases
On September 22, 2008, we announced that our Board of Directors approved a new share repurchase program
authorizing up to $40.0 billion in share repurchases with an expiration date of September 30, 2013. As of June 30, 2012,
approximately $8.2 billion remained of the $40.0 billion approved repurchase amount. The repurchase program may be
suspended or discontinued at any time without notice.
During the periods reported, we repurchased with cash resources: 142 million shares for $4.0 billion during fiscal year 2012;
447 million shares for $11.5 billion during fiscal year 2011; and 380 million shares for $10.8 billion during fiscal year 2010.
Dividends
During fiscal years 2012 and 2011, our Board of Directors declared the following dividends:
Declaration Date
Dividend
Per Share
Record Date
Total Amount
Payment Date
(In millions)
Fiscal Year 2012
September 20, 2011
$
0.20
November 17, 2011
$
1,683
December 8, 2011
December 14, 2011
$
0.20
February 16, 2012
$
1,683
March 8, 2012
March 13, 2012
$
0.20
May 17, 2012
$
1,678
June 14, 2012
June 13, 2012
$
0.20
August 16, 2012
$
1,676
September 13, 2012
Fiscal Year 2011
September 21, 2010
$
0.16
November 18, 2010
$
1,363
December 9, 2010
December 15, 2010
$
0.16
February 17, 2011
$
1,349
March 10, 2011
March 14, 2011
$
0.16
May 19, 2011
$
1,350
June 9, 2011
June 15, 2011
$
0.16
August 18, 2011
$
1,341
September 8, 2011