Microsoft 2014 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2014 Microsoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

74
NOTE 19 — ACCUMULATED OTHER COMPREHENSIVE INCOME
The following table summarizes the changes in accumulated other comprehensive income by component:
(In millions)
Y
ear Ended June 30, 2014 2013 2012
Derivatives
Accumulated other comprehensive income (loss) balance, beginning of period $ 66 $ 92 $ (163)
Unrealized gains (losses), net of tax effects of $2, $54 and $127 63 101 236
Reclassification adjustments for losses (gains) included in revenue (104) (195) 29
Tax expense (benefit) included in provision for income taxes 6
68 (10)
Amounts reclassified from accumulated other comprehensive income (98) (127) 19
Net current period other comprehensive income (loss) (35) (26) 255
Accumulated other comprehensive income balance, end of period $ 31 $ 66 $ 92
Investments
Accumulated other comprehensive income balance, beginning of period $ 1,794 $ 1,431 $ 1,821
Unrealized gains (losses), net of tax effects of $1,067, $244 and $(93) 2,053 453 (172)
Reclassification adjustments for gains included in other income (expense) (447) (139) (335)
Tax expense included in provision for income taxes 131 49 117
Amounts reclassified from accumulated other comprehensive income (316) (90) (218)
Net current period other comprehensive income (loss) 1,737 363 (390)
Accumulated other comprehensive income balance, end of period $ 3,531 $ 1,794 $ 1,431
Translation Adjustments and Other
Accumulated other comprehensive income (loss) balance, beginning of period $ (117) $ (101) $ 205
Translation adjustments and other, net of tax effects of $12, $(8) and $(165) 263
(16) (306)
Accumulated other comprehensive loss balance, end of period $ 146 $ (117) $ (101)
Accumulated other comprehensive income, end of period $ 3,708 $ 1,743 $ 1,422
NOTE 20 — EMPLOYEE STOCK AND SAVINGS PLANS
We grant stock-based compensation to directors and employees. At June 30, 2014, an aggregate of 346 million shares
were authorized for future grant under our stock plans, covering stock options, stock awards, and leadership stock
awards. Awards that expire or are canceled without delivery of shares generally become available for issuance under the
plans. We issue new shares of Microsoft common stock to satisfy exercises and vesting of awards granted under all of our
stock plans.
Stock-based compensation expense and related income tax benefits were as follows:
(In millions)
Y
ear Ended June 30, 2014 2013 2012
Stock-based compensation expense $ 2,446 $ 2,406 $ 2,244
Income tax benefits related to stock-based compensation $ 830 $ 842 $ 785
Stock Plans
Stock awards
Stock awards (“SAs”) are grants that entitle the holder to shares of Microsoft common stock as the award vests. SAs
generally vest over a four or five-year period.