Microsoft 2013 Annual Report Download - page 74

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seeking damages and an injunction. A trial took place in December 2012, and the court ruled that Motorola’s patent is
invalid and revoked. The court also ruled that the patent, even if valid, would be licensed under the grant-back clause in
Google’s ActiveSync license. Motorola has appealed.
Other Patent and Intellectual Property Claims
In addition to these cases, there are approximately 65 other patent infringement cases pending against Microsoft.
Other
We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our
business. Although management currently believes that resolving claims against us, individually or in aggregate, will not
have a material adverse impact on our financial statements, these matters are subject to inherent uncertainties and
management’s view of these matters may change in the future.
As of June 30, 2013, we had accrued aggregate liabilities of $412 million in other current liabilities and $162 million in
other long-term liabilities for all of our legal matters that were contingencies as of that date. While we intend to defend
these matters vigorously, adverse outcomes that we estimate could reach approximately $400 million in aggregate
beyond recorded amounts are reasonably possible. Were unfavorable final outcomes to occur, there exists the possibility
of a material adverse impact on our financial statements for the period in which the effects become reasonably estimable.
NOTE 18 — STOCKHOLDERS’ EQUITY
Shares Outstanding
Shares of common stock outstanding were as follows:
(In millions)
Year Ended June 30,
2013
2012
2011
Balance, beginning of year
8,381
8,376
8,668
Issued
105
147
155
Repurchased
(158)
(142)
(447)
Balance, end of year
8,328
8,381
8,376
Share Repurchases
On September 22, 2008, we announced that our Board of Directors approved a share repurchase program authorizing up
to $40.0 billion in share repurchases with an expiration date of September 30, 2013. As of June 30, 2013, approximately
$3.6 billion of the approved repurchase amount remained. The repurchase program may be suspended or discontinued at
any time without prior notice.
We repurchased the following shares of common stock under the above-described repurchase plan using cash resources:
(In millions)
Shares
Amount
Shares
Amount
Shares
Amount
Year Ended June 30,
2013
2012
2011
First quarter
33
$ 1,000
38
$ 1,000
163
$ 4,000
Second quarter
58
1,607
39
1,000
188
5,000
Third quarter
36
1,000
31
1,000
30
827
Fourth quarter
31
1,000
34
1,000
66
1,631
Total
158
$ 4,607
142
$ 4,000
447
$ 11,458