Microsoft 2012 Annual Report Download - page 77

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Employee stock options activity during 2012 was as follows:
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(In millions)
(Years)
(In millions)
Balance, July 1, 2011
93
$
23.21
Granted
6
$
9.41
Exercised
(64
)
$
22.20
Canceled
(13
)
$
29.44
Balance, June 30, 2012
22
$
18.69
2.15
$
264
Exercisable, June 30, 2012
18
$
20.77
0.83
$
178
As of June 30, 2012 approximately six million options that were granted in conjunction with business acquisitions were
outstanding. These options have an exercise price range of $0.01 to $29.24 and a weighted average exercise price of
$9.33.
During the periods reported, the following stock option exercise activity occurred:
(In millions)
2012
2011
2010
Total intrinsic value of stock options exercised
$
456
$
222
$
365
Cash received from stock option exercises
$
1,410
$
1,954
$
1,839
Tax benefit realized from stock option exercises
$
160
$
77
$
126
Employee Stock Purchase Plan
We have an employee stock purchase plan (the “Plan”) for all eligible employees. Shares of our common stock may be
purchased by employees at three-month intervals at 90% of the fair market value on the last trading day of each three-
month period. Employees may purchase shares having a value not exceeding 15% of their gross compensation during an
offering period. Under the terms of the Plan that were approved in 2002, the Plan will terminate on December 31,
2012. Microsoft intends to request shareholder approval to renew the Plan and reserve additional shares for issuance
under the Plan before December 31, 2012. Employees purchased the following shares during the periods presented:
(Shares in millions)
Year Ended June 30,
2012
2011
2010
Shares purchased
20
20
20
Average price per share
$
25.03
$
22.98
$
23.73
At June 30, 2012, 23 million shares of our common stock were reserved for future issuance through the Plan.
Savings Plan
We have a savings plan in the U.S. that qualifies under Section 401(k) of the Internal Revenue Code, and a number of
savings plans in international locations. Participating U.S. employees may contribute up to 50% of their salary, but not
more than statutory limits. We contribute fifty cents for each dollar a participant contributes in this plan, with a maximum
contribution of 3% of a participant’s earnings. Matching contributions for all plans were $373 million, $282 million, and
$275 million in fiscal years 2012, 2011, and 2010, respectively, and were expensed as contributed. Matching contributions
are invested proportionate to each participant’s voluntary contributions in the investment options provided under the plan.
Investment options in the U.S. plan include Microsoft common stock, but neither participant nor our matching contributions
are required to be invested in Microsoft common stock.