Microsoft 2014 Annual Report Download - page 77

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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. Employees purchased the following shares during the periods presented:
(Shares in millions)
Y
ear Ended June 30, 2014 2013 2012
Shares purchased 18
20 20
Average price per share $ 33.60 $ 26.81 $ 25.03
At June 30, 2014, 173 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 75% of their salary, but not
more than statutory limits. We contribute fifty cents for each dollar of the first 6% a participant contributes in this plan, with
a maximum contribution of the lesser of 3% of a participant’s earnings or 3% of the IRS compensation limit for the given
year. Matching contributions for all plans were $420 million, $393 million, and $373 million in fiscal years 2014, 2013, and
2012, 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.
NOTE 21 — SEGMENT INFORMATION AND GEOGRAPHIC DATA
In its operation of the business, management, including our chief operating decision maker, the company’s Chief
Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared
on a basis not consistent with U.S. GAAP. The segment information in this note is reported on that basis.
During the first quarter of fiscal year 2014, we changed our organizational structure as part of our transformation to a
devices and services company. As a result, information that our chief operating decision maker regularly reviews for
purposes of allocating resources and assessing performance changed. Therefore, beginning in fiscal year 2014, we
reported our financial performance based on our new segments; D&C Licensing, D&C Hardware, D&C Other, Commercial
Licensing, and Commercial Other. We have recast certain prior period amounts to conform to the way we internally
managed and monitored segment performance during fiscal year 2014.
On April 25, 2014, we acquired substantially all of NDS. See Note 9 – Business Combinations for additional details. NDS
has been included in our consolidated results of operations starting on the acquisition date. We report the financial
performance of the acquired business in our new Phone Hardware segment. Prior to the acquisition of NDS, financial
results associated with our joint strategic initiatives with Nokia were reflected in our D&C Licensing segment. The
contractual relationship with Nokia related to those initiatives terminated in conjunction with the acquisition. With the
creation of the new Phone Hardware segment, the D&C Hardware segment was renamed Computing and Gaming
Hardware in the fourth quarter of fiscal year 2014.